I can't answer the hosting thing, but as for the programmes, if you are willing to pay vbulletin is the best, there are other ways to get it but you could be closed down for it, if I don't know buddypress, and SMF is the best and easiest free one to use, I currently have a forum using smf and it looks really nice. There are some nice themes out there for it.
But i will say if I had the money I would buy vbulletin.