The 'catch' is almost invariably 'support' - or rather, lack of it.
There's also the unanswerable question of longevity - how long will they be around once people realise there is bad support, and after a potentially bad business plan fails.
I usually find that you get what you pay for, so if you pay nothing... ;)
What I've found with cheap hosts is that they come across as huge businesses, advertising massive amounts of space and bandwidth, but you find out after one or two calls to support that they are staffed by a handful of people, most of whom are not technical support.
They try to help, but if one of them is on a sickie, or if there's a big server problem (that never happens, right?), any problems you might be having pale into insignificance.
It's a gamble. If it's free, what have you got to lose? Just make sure you have backup space if anything bad happens - and don't let them get hold of the domain tags.
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Sualdam
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