you mean free web hosting?
You could use Gmail as e-mail service, you have to be referred though, but you get 2.7GB email space, more than what you need. As comparison, Hotmail only gives you 0.2 GB.
As for free web server's, you can get lots, just check out Google directory:
As for a server machine, just check out Ebay, and look for a nice, cheap machine. A Pentium 2/3 computer will do, i've heard the Compaq IPAQ is a nice web server.
For example, this would be a nice web server, and its free ($0.01 off ebay)