Lakeside55 0 Newbie Poster

I am trying to set up my Hardy Heron server to host my own website. I have a domain registered at GoDaddy, and have an account at DynDNS, where I have a freee hostname (Sasswebs.Homelinux.com, and the domain is sasswebs from JGoDaddy).
I have forwarded my domain, and my router has proper portforwarding. I think I am stuck on the nameservers issue. When I try to pick the 'I host my domains elsewhere' option at GoDaddy, and enter the Godaddy's nameserverss, it automatically defaults to the second option, 'Host my domain here', but either way, I still cannot see my site when I enter my domain's address. When I previously used the nameservers from 000webhost.com, I could see my website, but I realized after that I was getting free hosting from them too (I think) and not just the nameserver, and I want to host my own site. So..my question is, is it possible to host my own site, and only have to pay for my domain, or do I need to pay for 'custom nameservers' and how do I do that? (not sure if I use GoDaddy nameservers, or DynDns nameservers- which I know cost money) Please help me, I have spent days trying to figure this out, thanks very much :)