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There are two freehosts I would not hesistate to use:
Lightning Free
Porn City
Neither offer ftp, but both have been around a long time, and neither will steal your traffic. Wasn't this new freehost you are talking about only offering to be banner free for the first month. I thought it was a limited time offer to entice webmasters to try their services out, not an actual business strategy. Anyway, I've seen this question on 3 webmaster boards. Oddly enough, I did not notice this question raised at the Netpond boards. That might be a better location for an answer, although I would think e-mail would be the very best.
Lots of things can happen to a new freehost. The script could be a little buggy, the server might become overloaded and need to be upgraded, etc etc etc
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