Deal Alert: Register a Custom Domain Name for $1.99 from Yahoo!
My suggestion is to register with Yahoo! for $1.99/year, and then transfer the domain out to another registrar like 1and1 Internet that gives you more control and flexibility.
Although Yahoo! claims that they give you complete control of your domain (DNS settings) if you are an advanced user – which means You would easily be able to edit name servers and MX, A, and CNAME records, I found that there are several small quirks that are aimed at newbies which restrict you to fully control your own domain.
There are 3 specific services that Yahoo! gives free which seem like they are handy, but are pretty much standard across other domain registrars: 1) Email forwarding. 2) Domain Forwarding – set-up the domain you purchase to point to another website somewhere else. 3) Basic placeholder webpage – a quick 1 pager if you don’t need a full website yet (or are working on one that’s not public yet).
In the end, it may be worth it to get a domain from 1and1 for $6 which also includes an actual email account (not just forwarding from an email@example.com).