Use Third-Party DNS Servers, For Domains Registered by 1and1, NS, and Similar Registrars

SOURCE: http://blog.mridey.com/2012/10/how-to-setup-your-blogger-blog-with.html

Warning: If you are using 1and1 hosting services to display a website as well as a Blogger blog, these instructions will disable the website. Please post a comment with your website address and I'll check how these instructions must be updated. If you're using eMail, remember to complete the optional eMail step.

You will get a new DNS zone with the NS records already set:

Note: If you're using a subdomain, like "blog.mydomainname.com" then enter "blog" instead of "www" for the first CNAME pointing to "ghs.google.com".

Then add a second CNAME with the values that were displayed by Blogger on the settings page. Mine were "dqbhffrggxdu" and "gv-lca7dpm4ctjmlm3l3jhfftuepgwgzosehj7i2gqrg7y7wv37hima.domainverify.googlehosted.com." but yours will be different. They are specific to the domain name your are trying to register.

Finally add four A records with IPs 216.239.32.21, 216.239.34.21, 216.239.36.21 and 216.239.38.21. Leave the Host entry empty.

Re-assigned physical server to http://cloudns.net from Network Solutions (DNS registrar merchant) http://www.networksolutions.com/

For Network Solutions, let's first Log In. Then go to Manage Account > click Edit DNS > click "Change Where Domain Points" > select Domain Name Server > In the next screen, select "DNS" and "My name server" and enter the CloudNS name servers. They are "ns1.cloudns.net", "ns2.cloudns.net", "ns3.cloudns.net" and "ns4.cloudns.net".

Once the update is done, go back to blogger.com, back to the Advance settings shown in step 1, enter "www." + your domain name such as "www.mydomainname.com" as the custom blog URL and press save. Blogger will verify your DNS settings and apply the new custom domain.

Note: Remember to enable the "Redirect ...." checkbox if you would like your domain name to also point to your blog like "http://mydomainname.com" without the "www" in front.

BEFORE (error 32)

AFTER (no error)

SUBSOURCE:
http://productforums.google.com/forum/#!searchin/blogger/network$20solutions$20dns/blogger/6mcv5X_mwds/8jCi0UdhAhIJ