heroku with godaddy domain
I used this videocast to set up my GoDaddy domain with Heroku, and it worked perfectly. Very clear and well explained.
Note: Skip the part about CNAME yourdomain.com. (note the .) and the heroku addons:add "custom domains"
http://blog.heroku.com/archives/2009/10/7/heroku_casts_setting_up_custom_domains/
To summarize the video:
1) on GoDaddy and create a CNAME with
Alias Name: www
Host Name: proxy.heroku.com
2) check that your domain has propagated by typing host www.yourdomain.com on the command line
3) run heroku domains:add www.yourdomain.com
4) run heroku domains:add yourdomain.com
It worked for me after these steps. Hope it works for you too!
UPDATE: things have changed, check out this post Heroku/GoDaddy: send naked domain to www