I don't think IIS webservers support .htaccess.
You might want to download and install Apache instead.
Windows Explorer won't let you rename a file to something beginning with a period, but you can easily do it from the command line (aka. the DOS prompt).
You may be able to find a free host if you hunt around, but I would recommend paying for some webspace instead. It means no advertising, a fairly speedy website, and a reasonable featureset without too many restrictions.
For my host it works out at something like £120 per year for a domain name, 2GB of webspace, 100MB MySQL database, htaccess, CGI and PHP 5 support. I wouldn't be surprised if there are some cheaper deals around.
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