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How good is this VPN?

I've heard about Virtual Private Network (VPN).

But I'm wondering if it's worth getting. Especially because I'm thinking of signing up with an Internet Service Provider that says it's offering free VPN.

Is it going to prevent people, like moderators and hackers, from finding out where you are and who you are, even if you're currently signed up for a free account on their site?
Let's say there's an employee of such a website (which offers free accounts) that is poised to find out my real name. (And he would find that out by... tracing my IP connection back to the ISP company... or how the hell do they even do it?... I don't know...) Would that guy not be able to find out any details about me if I had VPN (even though ordinarily he could)?

Thanks.

P.S. I'm not talking about the police. I'm talking about very nosy people, like some moderators. (And no, not any of them from this site. :) :) :))

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