http://help.blogger.com/bin/answer.py?answer=55373
Rated • 1 review • webhosting, blogs, google • blogger.com

Google now allows you to publish your blogs on custom domains automatically. And unlike the FTP publishing option, here you don't have to buy server space for hosting content. Google will still host the content for you. Which is great as now those who cannot afford a webhost can still have their blow on personal domain.
You can continue hosting pictures on Blogger Images. You can use this feature with domains (e.g. mysite.com) or subdomains (e.g. blog.mysite.com).
I have just started with a blog on blogger and was thinking of getting my own domain. With this feature added to blogger, IMO blogger has become easily way ahead of any other free blogging service.


