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I just registered a domain here and want to point it to Google Apps. However when i try to chance the CNAME records (required by Google to verify) the Dynadot DNS control panel asks me for an IP address.  What is the correct address to put in here? Thanks.

Is the problem still occurring? You might be looking at your default name server settings. When you see your domain in your account area under the "Domains" menu tab, the Name Server column should show "Dynadot DNS:.." with your IP.

Well I did all this and it worked for a couple hours but now my account seems to be parked (highest in settings page) and the control panel does not follow my change back to settings using Dynadot DNS and Cname records.

What is the problem?

The IP address should be the IP address of your web server.  I am not familiar with Google Apps, so I do not know if they provide an IP address that acts as a web server for your domain.

If you don't have an IP address for your domain, you can enter in "127.0.0.1".  This is the default IP address which points to your own computer.  Then you can set your CNAMEs.

doesnt seem as thoo dynadot likes the subdomain wants to create

No - you dont want to buy from Google AND have them host. It it would be complicaitons down the line, especially with Goddy and co.

I'm sure this is doable from here. Just need to get the details  of how to set the CNAME and IP address, that is all. Does anybody know?

i cant get it to work either... kinda wish i bought the domain from google now