Although these aren't free I have recently used both Typead and Squarespace blog systems and I can highly recommend them. The small fee is the same as you would pay for wordpress hosting anyway.
For the Paypal and delivery system I use
Ejunkie - Sell Downloads, Online Shopping Cart which is free to try and only $5 per month for 10 digital products. (Yes that is an affiliate link and it will earn me a whopping $1 if you join!)
Andrew