Nice job Joey!  Many people will turn to a hosted blog service rather than creating their own WordPress blog because of a perceived need for advanced technical knowledge.  You provided a great overview of how relatively simple it is!  In my opinion going this route offers much more flexibility and customization options to a user, and I hope you convince more than a few to give it a shot.

I was wanting to do exactly what you just showed us, but I started all wrong.  I was told don’t use your name and get the .net and .org to go with your .com accounts, so I did.  Then I went to WordPress and tried to start making a blog.  I didn’t know where to go or what to do.  I put in no DNS or anything else.  How can I get rid of the mess I made and start over?  
Should I buy another domain name (my name)?  Can I cancel the blog I started?

Finally someone who let the cat out of the bag.  Awesome job teaching and training your customers.  Thankyou very much.  Dana