In the new version it was moved to the /catalog/product/view/type files. There is a separate file for each product type. Inside those file the line: getPriceHtml($_product) ?> is responsible for outputting the price.
But better yet, this tutorial I will show you how to write a simple jQuery script to change all “$0.00″ to “FREE”
First create a new javascript file and name it ds.js and insert the following code as follow.
jQuery(document).ready(function() {
jQuery("span").each(function(i, e) {
if ( (jQuery(e).attr('class') == "price") && (jQuery(e).text() == "$0.00") ) {
jQuery(e).text("FREE");
}
})
})
Now create a folder name called js within your folder and save the following file under it. skin/frontend/default/YOURTHEME/js/ds.js
Simply open your page.xml which located
app/design/frontend/default/YOURTHEME/layout/page.xml
and add the following line
<action method="addItem"><type>skin_js</type><name>js/ds.js</name></action>
Be sure that your magento site had jQuery enable.
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Good Luck!

Hi there
I like your share here – however you say put <action method="addItem"><type>skin_js</type><name>js/ds.js</name></action> in app/design/frontend/default/YOURTHEME/layout/page.xml
but my theme does not have such a folder – I can alter it in app/design/frontend/BASE/default/layout but there is no such directory as you specify in my installation – I'm using vers. 1.4
I've tried adding it here but no luck
hi there
Well I truly enjoyed studying it. This information provided by you is very helpful for good planning.
And how to place in the center of this side an element with width=900px?
I try and it goes to the left…
While this is a great fix for what I'm looking to do, my theme doesn't have page.xml – I do, on the other hand, have a local.xml in the folder you've specified… any help please?
It works good for English. But when doesn't work when i changed my language to Danish. I have tried that using Dkr 0,00 and 0,00 kr but seems not responding well. Any idea?