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/Peo, FreeWebSpace.net
Google best here for me.
I have tried some of the others, but never got good performance. I use adbrite too, but the CTR is not very good for ads that are shown via their system.
I think it comes down to a little thing known as branding. By offering a free service you can brand the site name. You then use your brand to sell other services to potential customers, like paid hosting accounts.
Maybe start a forum or place where people can contribute content. A simple form asking people to contribute will do. Maybe give them some sort of incentive to do so. Content is king on the web, the more you have the more spiders will crawl your pages and index them. This will lead to more...