is and has been for a couple years - seanic.net - under $50 a year which includes a free domain and the admin panel comes with a file manager - the only draw back I can see with them is that they do not have phone support. Email response is great, but can take several hours.
As to FTP - there are all kinds of free programs out there, banners are a curse of the free accounts, paid space comes without them, and about permissions to link images - are you talking about you linking to other peoples' images? You'd have to take that up with them - but it's usually not appreciated.
I want to start a website, and need some webspace. I have a free Angelfire account, but it stinks.
I need permissions to directly link images, FTP and no banners. I realize I'll have to pay for this, but I'd like some advice on who to go with. There are literally thousands out there.