IBP offers hosting, but you have to mess with ads. Get your own hosting.
I'd recommend
www.PolurNet.com - get one of their starter plans, and when your forum grows, just upgrade! ^_^
Not sure about costs, but IPB is still the way to go. Setting the rules is just a matter of editing them in the admin panel and/or posting a pinned topic in a particular board.
Operational Functions... just mess around with the admin panel
- and emoticons - you can download packs of them that come with install instructions.
