Lounge

Best source for this is Moodle HelpDesk

A quick search on Moodle and license produces this URL at the top of the list:
http://docs.moodle.org/en/License
which, amazingly enough, is probably the place to start.....

Interesting discussion here about fair use etc
http://moodle.org/mod/forum/discuss.php?d=114699&parent=503916

But I think it unlikely that the use of Moodle in the domain name would be acceptable from that perspective. Another question might be whether there is a use of something "deceptively" similar, like mõõdle or möödle or even muddle.

But, perhaps more importantly in this age, is the questin of what if anything moodleHQ could/would do if you even named your domain moodlefolk.org (there is already a MoodleMan blog, though HQ has not published all correspondence regarding licensing and permitting as that is none of our business)

What kind of service would your "moodle hosting site" offer?  I'm a tiny bit surprised that you would want to pursue such an endeaver because Moodle is included in Fantastico - which is a service that bundles Open Source applications and facilitates "one click" installment of any or all the included applications such as Moodle.

Would your "Moodle hosting site" include design and/or customization services?

Just curious and very interested.  I certainly need design and development help with the moodle app that I'm using.