I am thinking about moving my blog from the free Blogger site to a fully hosted domain with Dreamhost. I have been using them for a couple years for other projects and think they are really reliable and have good customer service. You get one free domain per hosting plan, and can host as many domains under one plan as you like. You also get unlimited storage space and unlimited bandwidth!
I have a coupon code if anyone is interested in signing up with them, it gives you 60 dollars off of a one year plan, which is half off. Plus you get the free domain name registration. They may not be the cheapest out there, but they offer so much I definitely think they are worth it!
The code is PIXELDOUGH - just head over to www.dreamhost.com to sign up and get the discount!