Syn, my blog is built on Drupal. Actually, it's almost entirely stock Drupal. I found it nice to work with and easy to get working but then, my day job is being a web programmer so maybe I'm not the best to ask.
As for hosting... I have an actual for-reals hosting package that I pay for and everything, but I've got it under a weird grandfather clause that means I pay very little for great stuff. I have heard, however, that
A Small Orange is good. I can't vouch for it personally but the recommendation comes from someone I trust about web stuff. I don't really know any good free hosts.