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There are some regestars out there that are registering domains in THEIR name and then leasing you back the domain name. Is that what this setup is? How can they be that much cheaper than anyone else? Everyone else is in the $40-$50 range for two years.
I have used easyhosting.com and everything seems fine. Another friend of mine has used easyhosting.com many times and always moves the domains to his servers after registration. He hasn't had a problem yet.