All of the above is true but it might make more sense with a simple explanation (bring things down to my level!).
If you have a webiste of your own and you save the pages of it on some free webspace hosted by your ISP then it'd get a crappy address like
http://www.myISP.myUsername.co.uk/index.html
If instead you go to www.dot.tk then they can give you an easy to remember address like
http://www.username.tk
Anyone who visits the latter is
redirected to the former :it's all just a way of giving users an easy to remember address to use and actually sending to another, tricky, location.
In the real world (and just to refer back to the 1st example) the 4 sets of numbers, the IP address, is the physical location of the website. You type in www.nme.com and the DNS host/server redirects you to the physical place where the site is hosted, in the same way that you can phone the old "192" and ask "Jimmy McGinty in High St, Edinburgh" and get the reply "0131 999 9876".
Alternatively, you could try google - type in "define:
"