I WANT TO EARN FROM GOOGLE ADSENSE-------should i create a free website or a blog??????

Both will work. If you create blog, you can update your content, ads, applications and layout without any complications.

Blog is even better for the purpose of earning :)

Blogs are also websites.But blogs are like discussions where you communicate with your reader which is not possible in a normal content site.You can also frequently update your blog which helps you getting traffic.I think blogs are more popular than normal content websites.

Blog is always free to create with google account but u will have to keep daily updating with good content to keep it up.For website you will have to buy a domain name & hosting,make an attractive site try to make popular your website by advertising in google adwords,yahoo,facebook etc..take a look at this site.

you will have to get a lot of traffic to make money

Create a blog. Blogs are more dynamic and google loves them, especially if fresh content is added to it on a periodic basis. Since you are very particular about earning through adsense, it would also be beneficial if you can read the google 'specifications for approval' document and follow it to the 'T'. I have had friends whose applications were rejected simply because the page layout of the blog was not in accordance to google norms. You can also search for blog creators/SEO experts (gazillions of them) who will do the entire setup of your blog and also ensure that it is adsense ready (it is very affordable). Hope this helps...

Blogs are much easier, but probably harder to get a lot of views on. If you only think a few people will look at it, a blog is definitely the way to go because there is very little chance your website will get views. But if you can constantly generate content (probably more than just text), and are comfortable with web design applications or HTML, go the website route. If successful, you will earn much more from google this way.