If you are comfortable adding and configuring new software, and you have a computer connected full time to the internet, then the answer is probably "yes!" Of course, there are many good reasons to use a competent professional hosting service, but for casual or experimental use, a home computer can do fine. (Also, there are various free services on the net. You may be able to combine free dns with free webspace.)
DNS servers generally require static IP addresses, so they are not usually run from ADSL and cable modem connections... but there are a number of free and non-free DNS services (see the or our service).
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