Drew,
Buy it through GoDaddy, but host it elsewhere is the general opinion.
Before you buy,
Google GoDaddy Coupons to find a discount code.
One thing you'll find is that GoDaddy (and others) will play you like they're fishing. They'll hook you with a .com domain, free privacy, etc., but next year, your $7.99 special will mushroom to $20 or so.
Once you are into the signup, extend it for as long as you can, assuming the discount carries out. I registered my last domain for 10 years, but all are at the discounted price (and, it's BFLBob.com, so I know I won't drop it.)
For hosting, I like Hostgator. MJ has a link pop up every so often where the first month is one cent.
Bob