It's lucky he doesn't want to charge for it, because you CAN'T charge for podcasts on the iTunes Store.
Luckily for you (if you're on a Mac), there's a very simple way to create a podcast: Garageband. Open the app, select Podcast, throw in a "master" piece of art (the title of the podcast for example), drag in the MP3 file into its own "track," make minor adjustments as warranted, export Podcast to Disk (from the "Share" menu).
This will result in an MP4 file. You post that on your website, then comes the only tricky bit: you need to make an RSS feed for that, which is what iTunes requires for syndication (there is a submission process for iTunes and Apple must approve the podcast, but once you're in you're in).
Here's more info on the subject:
Apple - iTunes - Podcasts - Making a Podcast
I use iWeb to host my podcast, which takes care of all the XML/RSS junk for me so I never had to create one myself.