Hoople - 11:50 pm on Jun 12, 2012 (gmt 0)
There are several Open Source solutions that you can get freely. Due to Google's recent changes towards links directories I would NOT purchase a domain/hosting/link program for this purpose at all.
I also would strongly advise against doing any sort of general web directory. A within your country regional specific or industry/niche specific *MAY* still be viable with LOTS of nurturing required to create/operate/sustain. The days of 'build it and they will come' are LONG gone (for directories) IMHO.