Google Sites: FREE websites for everyone
Google Sites is now available separately from Google Apps suite. This means that you no longer need a domain name to set up a site for yourself. Your site will be available at: http://sites.google.com/[your-website]
The maximum size available via this service is not mentioned anywhere..
This is an excellent service for people starting up trying to setup a website for the first time. The site provide plain vanilla WYSIWSG editor. The types of pages you can create are Dashboard, Announcements, File Cabinet and List. Dashboard provides a page where one can host any google gadget.
However, I would advice all the businesses to stay away from this and try Google Apps or Office Live.
The trend these days for individuals looking for a web presence is to host a blog. Hosting a blog has inherent advantage of getting indexed faster and easy to author via variety of tools. My advice to individuals would be to use blogs if they want to make a beginning on the web via Blogger or Wordpress or Live Spaces.