You have posted an interesting question. In fact it is possible to redirect or link  blogger to your own domain name. Are you interested in Wordpress(http://wordpress.com/), if so you can transfer all your blogging content from Blogger to wordpress using available scripts and then configure your domain name for wordpress which can be quite easy. You can learn more on that from http://en.blog.wordpress.com/2006/10/24/domain-mapping-registration/

Now, I have read some resources on this area and here is one article

Custom DNS name with blogger (from nerdlogger.com)

Here is how to make custom domain name work:

1. Obviously
   first register your domain name. I went over to easydns.ca (.com is the
   same company) and registered nerdlogger.com (I use the DNS-Only service & Registry Fees)
2. Give them about 2-4 hours to propagate the DNS information. Do not change anything during this time.
3. Now after about 4 hours go back and login. You should see the Members page and somewhere in there there should be a listing of the domains you own under domain settings. Click the DNS command next to the domain you want to use and you should see a page with a bunch of stuff relating to your brand new domain.
4. Scroll down to hosts section and delete all the predefined hosts (click the check box next to them and delete).
5. Now on that same page (you might have to navigate back to it from the members page) under aliases setup a CNAME (alias) for www with the corresponding A Record (host) for ghs.google.com and press next to submit it. Make sure it says www only and ghs.google.com and nothing else.
6. Now you have to wait another couple of hours for the new information to propagate.
7. Log back into your easydns account and check the domain information page it should have a CNAME (alias) for www.yoursite.com. (Note the terminating DOT) and a Point to A Record (host) of ghs.google.com. (Note the terminating DOT).
8. Now log into your blogger account and switch to the settings page. Look under publishing tab and select Switch to: Custom Domain. Fill the Your Domain field with www.yoursite.com and press Save Settings.
9. Wait another 10 minutes and try going to http://www.yoursite.com and/or http://yoursite.com. Both should work at this point.

I found this resource from http://www.nerdlogger.com/2007/05/how-to-use-custom-dns-name-with-blogger.html , you might want to check it out incase. And another similar resources I had are

http://www.quickonlinetips.com/archives/2006/03/blogspot-blogger-to-hosted-domain-name-feeds-links-search-traffic-and-pagerank-issues/

http://www.askdavetaylor.com/how_do_i_use_a_custom_domain_with_a_blogger_account.html

I hope this has given you some answer.

Publishing on Blog*Spot is the fastest and easiest way to use all of
Blogger's great features. (And for free, no less!) If you don't care to
have blogspot.com in your blog's address, though, you can
get a domain of your own. We'll continue to host all your content as
before, but it will be displayed at your new address. (Unlike FTP publishing, which requires you to buy both a domain name and a hosting service.)

Choose and Register Your Domain

The first thing you'll need to do is to choose a domain name, like mysite.com and register it. You can register domain names from any of a number of different registrars,
and you can use .com, .org, .net or any other valid addresses.
Remember: you only need to get the domain name; you don't have to pay
extra for hosting service. The easiest way to register a domain is to buy your domain directly through Blogger.
If you go this route, we'll automatically configure all of your
relevant DNS settings and attach your new domain to your existing blog
immediately.

Update the DNS Settings

DNS
stands for Domain Name System, and a DNS server determines what site a
given address takes you to. So far, you have a domain name but none of
the servers on the internet know what to do with it yet. To take care
of this, you need to create a CNAME record for your domain with the
DNS, associating your domain with ghs.google.com. The
exact procedure for doing this varies depending on your domain
registrar, but you can find instructions for many common registrars here.
If yours isn't listed, or if you run into other difficulties, you can
contact your registrar directly and they'll be able to help you out.

Once you've told one particular DNS server about your new domain, it
will have to transfer that information to all the other servers on the
internet, which could take a couple of days. So be aware that your new
domain won't necessarily be working instantly.

Update Your Blogger Settings

Almost done! At this point, you have a domain name, and the DNS
servers know to direct people to Google when they want to see your
blog. But Google hosts lots of blogs, so we have to make sure the right
one is associated with this domain. You'll do this on the Settings | Publishing tab for your blog in Blogger.

If you're publishing on Blog*Spot, you'll see a link near the top
offering to switch you to a custom domain. Go ahead and click that link.

The Blog*Spot Address setting now changes to Your Domain. Fill in the domain you registered, and then save your settings.

Now the only thing left to do is to tell everybody about your new address!

Notes:

• If your new domain isn't taking you to your blog, wait
  another day or two to make sure all the DNS servers have been updated.
  If it still isn't working, contact your registrar to make sure you
  entered the DNS settings correctly.
• Your original Blog*Spot
  address will automatically forward to your new domain. That way, any
  existing links or bookmarks to your site will still work.
• You can use this feature with domains (e.g. mysite.com) or subdomains (e.g. name.mysite.com). However, you cannot specify subdirectories (e.g. mysite.com/blog/) or wildcards (e.g. *.mysite.com).