I think the comment being made is that your DNS is hosted by a known 'freehosting' company -- as a result, your domain is now in the blacklist for using the freehosting company's DNS.
If you moved your DNS to your actual hosting company, you wouldn't be subject to the blacklisting and your submissions would at least get past that portion of the submission process, the sun would start shining, birds would start chirping and revenue would start flowing.
Until then, I think the powers that be have decided that DNS hosted by freehosting -- regardless of the ultimate location of your site hosting constitutes free hosting. That means that the sun doesn't shine, the birds don't chirp, and the revenue doesn't flow.
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