A whiteboard isn't free, but it is pretty cheap.
James Bach suggested using a whiteboard dashboard to track tests: Low tech Testing Dashboard.
I am also fond of well done spreadsheets at Excel (or a free variation, like google docs or open office).
I know these options aren't fancy or hi-techy as the other options mentioned in the answers.
But the whiteboard/spreadsheet options are so flexible! They don't try to impose on you any determined process or workflow, the test manager/lead can manage/lead by himself. They don't try to impose any limitations, the test manager/lead can limit the team as he wants.
Exceptions are extremely well treated by these tools. Just add a comment in red at the side of the exception and it is well understood now.
I know that this won't be so popular, and people will reply me "that doesn't scale".
At our company we have very expensive and clever tools, that "scale".
And still, I think the whiteboard and the spreadsheet can scale just as well. It is just a matter of having the manager managing the tests, instead of the tool managing the tests. Having the manager reporting progress and issues, instead of the tool doing the report.
Managing is a task for people, done with delicate people skills. Don't give that role to a tool. ;)
:) I'm yet to see any computer program that beats the flexibility, usability and the 'humanity' of a whiteboard and colored pens. :)