I created an account and started playing City of Heroes Freedom and there was no character slot when trying to create a character on any server.
You have to unlock slots. If I recall correctly, you can click on any slot and then on "next", and a confirmation window should pop up asking you if you want to unlock the slot.
Correct. As a free player you get 2 Unlock tokens to start with and you can use them to unlock any slot on any server.
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Correct as a free player you only have 2 character slots total. You have to pick a server than unlock a character slot on that server.
Note: And having just looked on the character select screen at the very top left corner is a circle icon with a head and shoulders. Next to this button it will tell you how many slot unlocks you have available.
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