I want to have a blog with a domain name. But I want Blogger.com to host my blog. Is it possible? Does blogger.com host blogs with domain name? How can I do it?

Yep, You can do it.
Register a new blog with blogger.com
Get a domain name from godaddy or somewhere.
Point a CNAME to ghs.google.com
Use the custom domain option in blogger to make the necessary changes.
More details available in custom domain page in blogger.

Hi! Thank you very much for your advice. It is perfect that I can do that! I am a little bit get lost myself with Blogger.

good tip..keep it up

Great info Sriz. I never knew you could have a personal domain with any extension and yet get it registered with blogger.com. That could be great. We can have so much freedom in terms of design and layout and yet we could have all the benefits of a blog. GREAT.