You may already be aware of the Google Blogger custom domain option. It's been ready for a month now. I used to consider publishing to FTP, but I like the new approach (using a CNAME record). The direction for switching to a custom domain are easy enough to follow.
I use http://www.godaddy.com/ mainly due to price. With just a parked domain, I am able to host my Blogger blog and I am using Google Apps for email, too. All that with a parked domain, so there's no monthly fee.
My church just started a blog using Blogger, but the domain name is akin to "reallylongchurchname.blogspot.com," and the "look and feel" does not match our church. I want to convince my pastor to integrate it into our main site, so I figured I would demonstrate the result on my own blog. It was quick and painless, taking less than 30 minutes to execute.
There is a downside: you cannot publish to a subfolder. In other words, you can do "blog.leeandcathy.com" or "www.leeandcathy.com" but not "www.leeandcathy.com/blog". That's not a problem for me, and my intention is to point the blog to "blog.reallylongchurchname.com" anyway.
Anyway, hope you like the change... it's kinda here to stay. And in case you are wondering, all pages that pointed to http://leeandcathy.blogspot.com/ will automatically redirect here, and all previous posts will automatically get to the right location, too. Also, http://leeandcathy.blogspot.com/ remains mine; if I want to go back to that Blog*Spot address, it is still retained by me.
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