A solution has been found.....
The problem stems from Google Apps for Your Domain....here is how I
fixed the issue of the "Another blog is
already hosted at this address." error.
1. Go to your domain registrar, (I needed reset everything to their default settings) and create (or change if already existing) a CNAME named "www" and point it to "ghs.google.com"
2. Logged into Google Apps for Your Domain or create a new account if you do not have one. (I had decided to set up an account AFTER originally setting up my custom domain on blogger.com....this inadvertently led to all of my problems)
3. Once logged in, from the "Dashboard" choose to ONLY add "Domain web pages" and click the "Add selected services" button.
4. Use the CNAME subdomain that has been giving the message "Another blog is already hosted at this address." error in Blogger as the address you want to publish to. (In my case "www")
5. From here I chose to create a simple "Google Pages" webpage just to confirm that my address (http://www.websitefreetips.com) was indeed working.
6. Back on the Dashboard of Google Apps for Your Domain, choose to remove the "Domain web pages service"
7. Go to your blog on blogger.com and change the custom address to the problematic address (In my case "www.websitefreetips.com"), blogger should now allow it.
8. In my case, when I would click the "View Blog" link...blogger now took me to the Google Pages page I had just created in Google Apps for Your Domain.
9. This step my be redundant and actually just require time for the DNS to refresh, but I logged back into Google Apps for Your Domain and proceeded to add the "Domain web pages service" back, but this time I used a different subdomain (not "www" but instead I used "blog"). I
never bothered to set up a CNAME in my registrar settings as I was only attempting to get Google Apps for Your Domain to "let go" of the "www" subdomain.
10. All of these actions soon caused the "Google 404 not found" page to appear for my site address.
11. I then proceeded to again remove the "Domain web pages service".
12. After only a few moments of waiting for the DNS to catch up, my domain (http://www.websitefreetips.com) was now working and opening my blog.