Simple Adsense site

Hi everyone. I'm new to the world of adsense and websites and all that good stuff.

Years ago I started a blog on an existing travelblog site. I gets about 600 to 1000 hits per month, even 6 years later. Totally over 100 000 hits.
Broken up into days it's really not a lot of hits and I suspect that after transferring it onto a new website I may not get that much traffic. Not sure!

But I do think it's time that I host the website myself and create an adsense account. I don't expect to make a ton of money. But some would be better than the current $0.00 I'm making!

I've got 65 blogs, about 600 pictures and 90 000 words of past material.
And I'm hoping to start a new blog project with more updated material.

I have come to the realization, being a rookie and all that getting started is not as basic as it seems. I was hoping the people here can help me with some questions.

1. Where should I host this wordpress blog. Hopefully a really good price. I have already purchased my domain name.

2. Currently the free wordpress account I have does not accept Adsense, nor does it allow me to upload my preferred wordpress theme. Once I host the websbite somewhere, are these things now possible?

Thanks everyone!