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I setup a so-called naked domain and pointed it at an Amazon S3 CNAME just fine.

I believe the big downside is that I'll never be able to use email on that domain because of the CNAME. Which, for me, wasn't a big deal.

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Email works just fine because mail uses an MX record (http://en.wikipedia.org/wiki/MX_record). (Sort of related: You can also CNAME the records that MX records point too.)

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