Banners aren't entirely necessary - you can get relatively inexpensive webhosting that's fairly robust without the need to support with ads. I use hostgator for my personal use - costs me about $10 a month which I think is more than affordable. I'd have to look at the bandwidth breakdown but they've been great to me so far. Others have reported success with Dreamhost. I know your plans are really preliminary right now but I just thought I'd throw those out there.
Simple is good. Design isn't my forte but if that were to be a base I think it's a good place to start.
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:bmage: Er..uh...I'm sorry, stranger, but I don't speak English.
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