I was trolling around on the search engines and came across a free hosting site for code control (http://codesion.com). I have already setup one of the free accounts and exposed it using 'Subversion' services which easily integrated with Eclipse. I am experienced with CVS and found Subversion so far to be a much simpler to work with and setup.

I'm a also big proponent of using advanced editors and source code control tools (Mod Development with Eclipse post) and so far would recommend this to anyone interested in using this for a small team based modding project. The nice thing is it is free for 200MB of hosted storage which should be large enough for most mods if you left out the larger binary files (textures, sound, etc). There are upgrades available but this may be a little pricey for hobbiest.

Will post updates if I find any quirks or issues, but so far so good.