With the publication of the Enedwaith content patch (Sept. 10th, 2010) Lord of the Rings Online introduced the option to play for free. There are, however, many differences between the F2P and Paid Subscription (VIP) models.
Turbine Points can be earned by completing Deeds, but this is very slow. Completing every deed available to you in a zone will not earn enough TP to buy the next Quest Pack, let alone any to spare for goodies like a horse. What many free players do is create and delete toons, accruing TP from each (new toon, new deeds), then use them all on one toon while continuing to use the second slot to grind TP.
As a F2P Player, it will be much harder to level beyond the mid-20's. Because of this it has been said that LotRO is not really Free-to-Play but merely Free-to-Try. There is no time limit to your Free play, and you can explore the entire world (up to but not including the content of the Mines of Moria expansion).
cannot sell items in the Auction House AH listings can be unlocked in blocks of 5 slots, starting at 95 ($0.95) for the first 5, to a max of 25.
Cannot obtain Quests outside of the starting areas of Ered Luin, The Shire and Bree-land. Recently, Lone-lands was added to the "free" quest zones. The others can be unlocked, one zone at a time, by purchasing Quest Packs.
Start with only 3 15-slot bags in your Inventory, 30 slots in your Vault and no Shared Vault.