I was never much for all those gaudy website tools like the all too ubiquitous java graphics applets or flowery animations. Flash fits in there nicely, so I never bothered with it. That and the fact that you HAVE to buy a $500 piece of software to be able to make anything Flash at all, atleast as far as I know.
I personally like http://free.prohosting.com but only because I'm familiar with their servers. But they do run advertisements at the top and bottom of every page, and sometimes a pop-up.
That freewebs.com site that was just posted looks pretty good to me, if your church is really not willing to pay for a domain and hosting. If they are willing to pay, though, then I'd point you to GizmoBytes.net. One of the members of this forum actually runs that 'server reselling' service and it seems great from the description. VERY cheap, tons of features. That's what I'd go with if I bought a domain today. That or , another personal favorite.
MET, I suggest you come up with some designs for webpages, simple designs, and show them to your pastor so he knows what you're capable of doing. You can even run them by us for a critique before hand so you know what the keep an what to throw out. That way you and he haven't committed to each other yet and you can both see how it will work if you go through with it.
And goodluck on teaching those classes. I've tried before, but then again I have no inclination towards educating others. My advice is to be their friend, not their teacher.