How professional does free webmail look for businesses?

The other day I was with a client discussing their web site project. We were discussing likely costs and one of the clients said at least they had taken care of e-mail. They had registered their company name at yahoo.com - he was very pleased that the address had not already been taken. If it had he would have had to consider a MSN address and he felt this was considered much less professional than a yahoo one. This struck me as bizarre, firstly that they were considering using a free e-mail address for their business and secondly that one free provider was considered more professional than the other. Maybe it's just me but when I am driving along the motorway and I see a van or truck with the company contact e-mail as a hotmail.com it always makes me think..if only they knew how easy it is to have your own domain and email.