gibonini12844
This will answer your first question:
http://x10hosting.com/forums/useful-information/166022-country-restrictions.html
Yes, you will start with a 500mb for a starter but later when you'll manage to spend most of the space available you may ask in support forum to check your page and lift the limit. The forum elder will verify your site for a TOS compliance and if everything is okay and you have a valid reason to ask for a space and it have something to do with your site he will promote your account for 1G upgrade and with a second request, to unlimited space.
Follow the Terms Of Service, Check the announcements while visiting the forum and you'll find out it's a great free hosting really.