How does one go about purchasing the rights to a certain website name like XYZ.com?
For a new domain name, you just need to create an account with a company that handles domain names, purchase the domain, and it goes in your account. From there you can set the hosting servers, the contact info, etc. Or you can do nothing with it, just sit on it.
You may wish to see if the name is available first. A 'whois' lookup will tell you. GoDaddy (http://www.godaddy.com) has an excellend whois lookup (on the homepage, all the way on the bottom, toward the right side...it's a text link. Or click here (http://who.godaddy.com/whoischeck.aspx)). For the money...GoDaddy is the cheapest. When you check out use the code "save10" to get 10% off the order.
If it's an existing domain name that you want to purchase ("hostile takeover" LOL) then you can use a domain company to put in a bid for you. The owner can accept or reject it. Most of the time you'll find that it's difficult to wrestle an existing domain away from someone, unless they're not using it or they're going to let it expire anyway. But you never know...only thing you can do is try.
Cool. What about bandwidth? I'm kinda clueless as to the nuances of setting up something like this and I have an idea for something.
Bandwidth and web space are determined by the hosting company. Most web hosting companies are generous with what they offer these days...still, it pays to shop around. For hosting, recommended are...
http://www.godaddy.com
http://www.dreamhost.com
Also, your ISP at home may offer hosting for free with your account; most do.
Hmm Eric, you da man, you saved me from having to provide this info, I personally own about 10 domains LOL