Sounds good. I wonder if its too good to be true! But I would go for it. It's only a few dollars to lose.
Personally, I host all my own services except POP3 and DNS and I think hosting yourself gives you the most control and management of your services. I first had let a company (I won't say any names) host my site, but at least once or twice a week my site would be down for a few hours or I'll have some other problems. I decided it was time to host my own services. A simple personal web server and mail service doesn't require a large server. You can use your personal PC to handle those request, if you don't plan to have 10's of thousands of people visiting your site each month. When I first started hosting my own services I had one machine a HP Vectra with a Pentium III (not the best hardware)! Running Windows XP. Though, it got the job done...it hosted my personal webpage, my FTP service, SMTP service, and I used this as my main machine for Internet access and applications (though, that is not recommended). But if that is out of your reach or you don't have the technical know-how, the equipment, or whatever else then by all means go with the deal.