I've never heard of them, but for anyone who is interested their website is at:
http://www.websitedesigninstitute.org/
Speaking personally, I can
never get my head around the concept of something for nothing - I just don't think it happens.
This company offers free web design as long as you have it hosted by them. I couldn't see any prices for hosting - you'll still have to pay for that.
Next, take a look at some of the sites in their portfolio to see if you like what you see.
I looked at a couple.
The first had a small 250x200 image, yet it was nearly 50kb in size. That caught my eye because I didn't realise their was an image until it suddenly appeared. I have a thing about badly optimised graphics :)
The second had a Flash intro which was set to size 100% with the browser window. That's another thing that isn't a good idea.
The third one had a Flash intro (I think it was created using Swish or something) and it looked quite crude.
Most of the sites in the portfolio had a similar design.
There's nothing really wrong with their sites, but they aren't especially polished either.
The choice has got to be yours. If you like the sites they produce and you are happy with their quote for hosting (I guess you have to have a minimum term or something) what have you got to lose?
For merchant accounts I'd suggest posting in E-Commerce.