What exactly do you mean by domain hosting? That could mean a lot of things
Are you wanting to use a small home router as a domain controller? If that is what you are after I will have to say no, that is not possible as far as I can see.
If you are using a regular PC as a router then it would definatly be possible. A small PC running Server 2k or 2k3 can be a firewall/router as well as a domain controller. Using a windows box as a barrier between you and the outside world is generally not advised but for a small network it is fine.
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