If you do Free Web Hosting, there can be lot of abuse complaints. Many data centers create too much problems and even can get your server canceled.
I found www.intercage.com is good for hosting such web sites.
I really like his post on webhosting talk
Most server providers will create problems if your site have a link to illegal content. For example, if you run a site that users can post content, at times, this can happen. Users post link to illegal web sites. I agree it is bad, but why no one is going to take down the offshore server that hosts the illegal files ?