You could use a free service like Dropbox to host your sites files and then setup a redirect for you domain through GoDaddy to point there (assuming you have a domain name registered through GoDaddy). There are various tutorials out there on how to accomplish this, so my suggestion would be to search Google for "using dropbox to host a website".
Ah yes, you're right, I read the question wrong. I thought he was looking for free hosting for a domain registered through GoDaddy.
Yes, uploading directly through iWeb would be the easiest way. If you have an older version of iWeb (prior to '09) and can't publish directly through iWeb, you could export the site to a folder and use something like Cyberduck to publish.
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