Microsoft hopes to attract users who have bought domains from major registrars, as the help section of WindowsLive Custom Domains includes instructions on changing nameserver settings on domains housed at eNom, Network Solutions, Register.com and Domain Discover.

Microsoft recently signaled its growing ambitions in web hosting as it unveiled a preview of Office Live, a free service which includes a domain name, 30 megabytes of storage, five e-mail accounts and traffic analysis software. The accounts will also include advertisements, which allows Microsoft to generate revenue from the growth of contextual advertising, but is likely to be an issue for many businesses seeking a professional web presence. The new Windows Live service could be of interest to those users, allowing them to host their web sites elsewhere while using free storage and filterings ervices from Microsoft.