I know this can done and I know it can be free as well. But I would like to know the exact procedure step by step how to activate this if you own a domain, but you don't have any web facing web server (I've heard you have to put some file somewhere for google to check to activate domain or something).ClarificationI want Google to handle my custom domain mail. Not like forwarding existing mails to Google. That's not what I'd like to know here. I would actually like Google to serve my emails.
Using GMail with a custom domain
gmail;google apps;domain
I believe what you want is their mail hosting service. You basically setup the domain MX records through google, but you'll need to point your domain to google's name servers. The link explains the process.