Can I make one website for each domain name for both web addresses from the same web hosting service?
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Depends. If your webhost uses cpanel (most webhosts do) you can set addon domains IF and only if the webhost allows. They have the power to turn this feature off if they want you to pay for an additional hosting package for extra domains. For example: My hosting company is siteground. They don’t allow addon domains in cpanel.
On the other hand, if you want to set both domain names to go to the same website, this is done using “parked domains”. This is almost always available with web hosts using cpanel.
Yes, you just need to make sure each domain has it’s own folder. For help with that, I would contact your provider or ask another question on here. And when you start making those files, use an FTP client.
Absolutely
Visit http://www.brinkster.com for details