Host free sites on a paid host. Don't worry about the bandwidth bill -- worry first about getting the traffic. If you can attract 40K of decent traffic, you will cover your bills easily. BUT -- it's harder to get that much good traffic than you think. The traffic to free sites drops off quickly after they leave the "new" section of links lists, etc. So a "build it and forget it" site is not going to pull as much traffic as you are assuming.
Another idea -- make AVS sites instead. Hundreds and hundreds of them. Bandwidth becomes a nonissue and you definitely can make money if you're smart about it.
Good luck.
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