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Okay, I need a simple answer to this question.

Is it possible to configure my personal webserver so that people can access it at an address like "http://www.randomwordicameupwith.com" instead of "http://myipaddress" without paying a monthly/yearly fee for domain hosting?

Simply put, can I create my own domain name independently of a hosting company?

If the answer is yes, then I think that I know how to do it, but if the answer is no...... then I suck.

On your home PC? It's possible but not recommended.

You'll need to setup a webserver and DNS server with the appropriate entries.

For a .com domain you'll need to pay a yearly fee.

you can go and visit dot.tk if they still do free ones and get one there, but that's only a forward to your own pages on your webserver

You'll probably have to buy a domain name...domain names are quite cheap, though, I bought mine at namecheap.com and it's like $9 a year.

silver has a webbie

Yes, I do and have for quite some time.

Can anyone set up a tutorial, or point me in the direction of one, to set up my own webserver as Darth Surgent described, minus the whole .com domain... I just want something that works. That, and/or an FTP setup... both ways would be great, if anyone knew anything off the top of their head.

the best learning school is google.com

Install Apache: http://httpd.apache.org/download.cgi

Then have a read at their documentation: http://httpd.apache.org/docs-2.0/