That is the mobile me service that costs the $99. It give you a mail account plus more. If all you want is a mail account, then I would just sign up for a free Google Mail (GMail) account.
The .mac account used to be free but now you can either get a MobileMe account for $99 a year, which will keep your iPhone/iPod Touch/iMac/MacBook, whatever you have, in sync. Otherwise you can get a free account, which you can still use the MacBook's Mail account with.
I've been paying for .Mac/Mobile Me since 2002, so I'm unsure when it use to be free. If you're referring to iTools (which is the name that it had before) then that was a free service for OS 8 and OS 9.
When you purchase a new Mac (from Apple) you can qualify for a Mobile Me first year subscription for $69 but it has to be done at time of purchase. Apple also offers a 60 day free trial (full feature) if you're interested in trying it out. It's a fantastic tool, especially if you have multiple Apple devices that can take advantage of the syncing features. I'm also a big fan of the easy uploading features that it offers with iPhoto.
Mail (built in to Mac OS X) is compatible with any POP/IMAP account and now with Snow Leopard, offers very good Microsoft Exchange compatibility.
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