As DeMachina pointed out weapons, ammo, armor and anything else you do does cost RL money. Not only do you have to repair these items but these items deterioate at a very rapid rate.
So, as the troll below pointed out, yes this game is "freeware". I can go get ICQ at a cheaper download and have just the same "freeware" as well.. a glorified chat program. If you want to do anything else in this game it is going to cost you money, and a lot more than normal MMORPGs on the market now. I think that the estimate of $10-20 per month is low too for those gamers that spend more than 10 hours/week playing.
Personally, I do not recommend this game.. I tried it a while ago in beta and it was not worth the time OR the money.