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Google currently has the best/better deal that I know of for domain registration $12/year.
Unlike godaddy, which tempts you with a cheap price and then raises them every year...
Also google doesn't engage in ****ery with your DNS and any other services you've configured elsewhere. They make it easy to put in glue records (so you can host your own DNS), and it Just Works.
As far as actual hosting, I'll be happy to park any domains you buy and give you access to put up a single page "business card". Or, I can set up a linode.com instance for you with a nice control panel so you can manage web space, email accounts, etc.
BUT... I'm a believer in having full and total control of my own stuff. If you just want to buy the domains and get cheap webspace, I thin 1and1 still has a good reputation for cheap hosting. I'd still buy the domain from google, and keep my domain ownership separate from whatever hosting company i'm using
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