Hello,
Actually the Chocolate hosting plan is a the new name of the free hosting plan since we implemented the new website design in a couple of years ago, so it is still does not provider SMTP service. In order to have SMTP service you will need a payed hosting package such as Watercircle or a bigger package.
Upgrading to a paid hosting plan would also remove the 500KB file size limit, which the Free plan has, so you will be able to upload larger files. The Watercircle plan is only $2.95/month and has no such restrictions. In addition disk space, monthly traffic and other features will be increased significantly. Detailed web statistics and access/error logs functionality will be enabled as well. You will be able to check a comparison of our payed hosting plans features here:
http://freehostia.com/compare-hosting-plans.htmlPayments are accepted only for one year in advance. There is no available options for monthly payments.