Yes, I watched a few free anime, movies, and shows on YouTube at http://www.youtube.com/movies?feature=mh . I'm surprised that the selection is pretty huge, and has some pretty cool foreign films, and anime on it.
Yes, but Netflix does not have any free movies like YouTube. Although YouTube's rentals are kind of expensive at 4 dollars for two days, but you don't have to sign a monthly contract like Netflix.