No, I don't think it's a scam but unless you are going to stream movies or music from your site or put up a ridiculously large image gallery you would never need that amount of space anyway, 1gb is enough for the most basic sites.
The problem with free hosting is that you're often not guaranteed uptime and the traffic is very limited. I would suggest you to go and buy some real hosting from a serious hosting company. There are plenty of cheap ones out there, you simply have to find them!

I use One.com, never had any problems with them, and they've got the best support ever! 24/7 Live Chat Support!
And also, they're not expensive!
Check them out:
http://www.one.com/en/Hope you find something!

QUOTE(livium @ 8 May, 2009 - 04:09 AM)

hello!
I wanna post my website on the internet and i have this dilema.
there are numerous hosting sites which claim to offer up to 5 GB of space for free with no advertising. How can this be possible? Is there a scam?
thanks!