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I haven't seen anything to suggest that google treats free hosting different to any other type. The only different would be you would have their link on your site so you would loose pagerank, that may have a effect your ranking.
However their was a suggestion a while back that google gives more weight to domain name that have been registered for more than one year, because this suggest that the owner is invested in the site, rather than just fly by night.
So if this is true then you could make the logical conclusion that people who use free hosting are even less invested in the website than people who buy a 1 year domain registartion.
However I think this would be short sighted since free hosting is often used by people with very little money but often have very good content. For example like students and kids.
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