DNS is Domain Name System. It's basically something that allows the name you type in in IE to be transferred to a number. Theres a free DNS at www.dyndns.org. You can download a client there which will upload your IP if it changes. You then install IIS from Add/Remove Programs-Windows Components. Make a webpage named "default.htm" put it in the ipubnet/wwwroot folder. If you have a firewall on your router/modem, port forward port 80. Wait about an hour for the DNS service to get your IP number listed, because if a server cant find the number, it will search other servers for it. Ask someone to goto your website, and see if its up.
k so, this is how you can host your own website and domain name? wtf?
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DNS is Domain Name Service. It resolves a particular domain address to a specified target file / ip / other domain. DNS isn't part of hosting, it is solely for telling your newly bought domain where to point to. Like Zelaron.com resolves to the oc-48 ip the server resides on. There is also rDNS, which is used mostly for connections where there is no domain for it. A good example is in irc. My ip shows up under the cox.net domain. But someone with a buisness DSL who has rDNS can make it say blah@hissite.com even though it's just his DSL. You still need a domain in order to use a DNS server, so don't think DNS get's you a domain. I hope this helped. If you need any further help just email me at toby@netsmog.com