The freebie account includes not only the domain (any available .com, .net, .org, or .info address), but also site-building tools, reporting tools, project and document managers, 100 e-mail addresses, and collaboration-minded online workspaces. You get 500MB of storage, too.
So what's the catch? There really isn't one, though the free domain hosting expires after one year. After that, it'll run you a very reasonable $14.95 annually.
Wow. Microsoft will now back domain name speculators and spammers!