Some nice free templates can be found at:

http://www.freecsstemplates.org/
http://www.oswd.org/

However, given that you'll be selling stuff, and if you'll have a wide array of products, you should definitely look into using a shopping cart, to keep things nicely ordered. OScommerce and Zencart are free software.

Hosting? Definitely start with shared hosting. Success doesn't come over night.