I'm currently in the process of starting up my own web hosting/voice chat company and I've got most of the details worked out...except one. I plan on using ENom to be a domain name reseller and let customers buy domain names through them. However, I don't get how the domain name then gets pointed to my server. I read that I have to set up something like ns1.mydomain.com and ns2.mydomain.com but I don't know what that means. I understand how DNS works but the part that's confusing me is that it sounds as if I have to set up my own! Any help on this topic would be great.

If you have a reseller account, get your host to create your nameservers on the server. Then log in to your registrar and create the nameservers (every registrar will allow you to do this). Then when you sell hosting, you ask your clients to point their domain to your nameservers.

Vito

ns1.mydomain.com is private nameserver.
You need to register the nameserver with the domain registrar pointing to dns server ip
When someone visits a website, the dns resolver will query nameserver for ip of the website/domain.

One of these tutorials could prove to be of help when creating the nameservers: http://onlinesupport.org/tutorials_dnsns.php

I just emailed them and asked, lol.

They should be able to set them up for you and give you instructions on how to set them up with your registrar.