files can be transferred to any server from anywhere using ftp services like CuteFTP or FileZilla etc, provided you have the ftp details of that server.
I have seen people using paypal for money transfer.
And getting some clients is a skill in its real sense.

Step 1: Get reseller hosting;
90% of reseller hosting services will let you host UNLIMITED WEBSITES with UNLIMITED BANDWIDTH at no extra cost (Although some you have to pay for your domain names but that's about $10 a year)
Most reseller hosting will allow you to completely custom brand your hosting so people will think it is you providing the hosting when it is actually a big company. They can also handle your payments and keep everything secure.
Step 2: Create your own site;
If your clients come on to your site and it is badly designed, buggy, ugly and/or just generally a bit rubish, people won't want you to design there websites.
Step 3: ADVERTISE!!!
Make sure people know who you are, you may need to get involved in some projects that don't pay much at first just to get your name out there. Be active on forums and add your URL to your sig-block so people know who you are.
Step 4: Software;
As for software a good investment would be a good HTML/PHP editor such as Dream-weaver, i know its a bit pricey but it has built in FTP and loads of code hints as well as integration with Flash and Photoshop for really easy editing

Anything I missed anyone???

thanks samarudge for the nice informative post

ok guys thanks for your reply