My question is a two part one:

1.) can you host a DNN site on GoDaddy? If so, what is needed to do so?

2.) Has anyone used http://www.ihostasp.net/Default.asp to host a DNN site, if so is it good or is there better hosting providers for DNN sites?

Everyone has their opinions.

I have used 3 different hosting companies for DNN, including GoDaddy, Ihost, and 3Essentials.

There is no question, there is no substitute.  For what you're asking, 3Essentials is the best.  Best customer support you could ask for.  Prompt, courteous, will work personally with you.  They actually answer their phone, etc.

http://www.3essentials.com/?3eref=13235

Once there, you'll most likely want to click the MULTIPLE DOMAIN tab and chooose B10 or B20, most likely.  These give you the most benefit for the price.