Hi, I am still confused about name servers too! I have always used shared hosting and never had a problem setting name servers right but I have just signed up for a VPS with Webuzo control panel and I am not able to get my domain online.
My domain www.mydomain.co is registered with GoDaddy.
On setting up Webuzo I entered the following:
IP: IP of my VPS
Principle domain: mydomain.co
NS1: ns1.mydomain.co
NS2: ns2.mydomain.co
I then went to Godaddy and changed the name servers from the defaults to:
NS1: ns1.mydomain.co
NS2: ns2.mydomain.co
After about 10 minutes I get an email from Godaddy saying:
Error: Name server pending addition is not registered.
I have rebooted the VPS and repeated the process a few times, but same error message.