Is it free to make a vBulletin site?

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No. You should go with SMF or FluxBB if you're making your own forum and don't want to pay.
 
vBulletin isn't cheap by any means, nor is the hosting required for it, it's not a very light piece of software so shittyfreehost347 probably wouldn't be much use, meaning you'll have to pay for hosting.

It's also not very newbie friendly, the admin panel is absolutely huge. Try MyBB or phpbb3.
 
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