It's not webspace, per se, but have you checked out
www.purevolume.com ? It's like myspace, only strictly for musicians/bands, and it's MUCH cleaner. You can upload up to 4 songs at a time with the free account, and you get a band page. A lot of bands have made it big with the help of purevolume, and the kid who created the site went to my high school, and was a year ahead of me. Nedless to say, he's doing quite well now.
For actual webspace, though, I wouldn't know.
Edit: I should mention that the songs stream from their flash player, but you can opt for a download link right to the mp3 if you want. Setting it all up is very quick, too.
