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In general, I'd prefer using your own hosting, virtual accounts to start with are cheap and domains including privacy will cost your less than $10 a year.
I'd recommend Webair for hosting and Moniker for domains, both pretty cheap but very solid with good customer service.
All affiliate programs will give you hosting if you proof that you can deliver signups, just ask your affiliate manager. Those who offer free hosting for all affiliates often just provide you with very limited hosting accounts (filesize limits, no scripts, etc., almost always only useful for galleries)
Don't put all your eggs in one basket, it's alot easier to switch out affiliate programs that don't work for you if you don't rely on sponsor hosting...and whatever you do, make sure YOU own the domain.
To start with, I'd go for a free adult blog hosts, like thumblogger, thumbblogs, xlogz, x-aff, blogbugs, blogtur, loads around. It's easy to setup a site network using those services, and you'll profit from the authority these sites already have, making it easier to get some good SE rankings.
Good luck with your adult ventures, feel free to drop me a PM in case you have any specific questions.