Legalities aside from selling photos from an event that may prohibit such behavior...
Check out
http://photoreflect.com
It is a free photo hosting site that allows printing, either through third party or you can print yourself. They handle sales via various payment methods.
I used them for posting photos and making sales for the past couple of years.
The site takes some portion of sales, naturally... and they have some very minimal advertising mainly consisting of their name on pages. (No huge banners, movies, click-throughs, etc...)
I finally moved on the SmugMug, but not sure I like them much more. Really needs lots of customization.
My first requirement in any service is being able to password protect a gallery or set of photos. People often do not want photos of their kids open to the public. Photoreflect does that. So, for free, Photoreflect is a pretty decent service.