I'm always interested in ways to get domains onto different hosts, but I like to see how the hosting payment is made - there is no such thing as a free host. With someone like Kinghost it's all up front, and you can see where you are. Allowing scripts is a disadvantage for me as well because I'm a cynic. If you take away the 404 traffic and the banners, and there is no geo-redirection, then I don't see how your service can be commercially viable. I don't buy the "I'm a nice guy with lots of spare capacity" line that is often used either.
__________________
Baronets (incorporating Domains for Porn) is holding down domain registration prices for this month.
They are still $7.95 - and that's without any asterisks concealing extra charges.