Webspace is a premium commodity for anyone wanting to Podcast. There is no solution like just sucking it up and paying for it. There are plenty of places that will give you space for as little as $5/month (http://www.1and1.com is my hosting service and has a good deal for $5). Hosting services vary greatly in quality -- some indy hosters are great, others are crooks, but then again, some of the big companies are as bad as, well, big companies... phone companies...
There are also some blog services that allow you to post stuff for a premium fee. Blogger.com does this, I know. Of course, I don't really use those much, so I don't know a lot about them, but others are things like TypePad or MoveableType, all of which, I believe have audio posting plugins and will generate an RSS feed.
But if you have any savvy, then it would be easy to just get some cheap FTP space and then post links on (e:strip). But if you really want a podcast that people get behind, then you want to publish an RSS 2.0 newsfeed with <enclosure> tags, which denote a URI and type for a media attachment. Right now, it doesn't look like Elmwood Strip does that, but I bet we could lobby Paul to allow a field in posts where we could denote a link to a media file and choose a filetype from a pull-down.
The file format and stuff should just be something easily used. MP3 is good. If really going for iPods exclusively (something I wouldn't recommend), you might use AAC. Likewise, you could use WMA, but those won't play on iPods, so that's kind of a pain. MP3 is probably best. Or OGG for the 1337. What's most important is publishing your feed, because that's what people put into iPodder or what gets checked from Feedster.com or BlogDigger.com.
Here's a link to the D-Link DSM320 page:
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The DSM320 is a UPnP device that uses a wired or wireless (54G) network. It has had a bumpy life so far but the latest firmware is pretty good and has been improving at a decent speed. It plays music, shows photos, and plays all kinds of video formats. It could play more formats, and various other improvements, but overall, if you're an early adopter, it's pretty awesome.
I run a mediaserver program on my main tower where I house my media. The DSM320 automatically sees stuff I place into the media directory. I can keep it very organized and use my home entertainment system to see and hear all the media on my computer. I've written more extensively about my network setup on my website, GamesFirst! -- here's a link: (http://gamesfirst.com/v4/index.php?m=l&i=372) We're working on a major article about setting up home gaming/media networks, networking between households (across the street) and lots more network hardware reviews.
Anyway, I hope that helps. Post your feed link on your journal.