The $35 you speak of is for a one year registration for your domain name, .com or .net.
Registering a domain name (Your Domain Name) is like staking your claim to your own little piece of the internet, its like having "your own store" on the high street.
When you use a free service such as yahoo, xoom, geocity or any of the multitude of free hosting services you'r a sub tenent.
Think about it, would you rather be http://www.katya.com
? Having your own domain is a MUST if your serious about doing business on the net.
Use these free hostings as doorway pages to your domain.
First you must chose (carefully) a domain name, give it some thought as it could become valuable. (business.com was sold last year for several "Million" dollars) Then you have to do a search to see if the domain name you have chosen is free, if it's free then you can register that name. You can use http://www.register.com
/ for this. The register may or may not be a host company, if they are "not" a host company then you will have to find a host for your domain, I can recommend http://www.addr.com
they give value for money, service and reliability.
I reside in Australia but I have a couple of domains hosted with addr.com in the USA, Why? I searched around and found (in my opinion) that they offered the best value for money. I have "unlimited" email addresses, autosponders, guest book and all the trimings. By the way, the registration company has nothing to do with redirecting your mail, unless the registration company is also your host. Redirecting mail is a job for the host company. This mail redirecting is no big deal, you can configure your mail program to check "all" your mail boxes through your local ISP, same as I do:-)
Hope this helps, if you need further assistance drop me a note.
Domains hosted in the US of A.:-)