If you need to buy the domain name as well, Hover.com and Namecheap.com both have low-price domain names and email-only plans.
Originally Posted by greg8872
gmail also offers some type of service where you can set up to have emails with your own domain as well, but I know two people who use this and at times have issues that their client's didn't get the mail as their ISP marked it as spam since it was coming from gmail servers (saw the spam rating given to the e-mails, without that flag, would have passed)
Google Apps is $50/user/year. I use it for dozens of accounts and have no problems.
Greg, make sure your friends have added an spf record to their dns.
v=spf1 include:_spf.google.com ~all