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Purpose of Certificate Authority in a domain?

I'm trying to understand what the purpose of the certificate authority role is in a 2008 domain.  Is there a basic article you could point me to that would cover the very basics of certificates, the different kinds out there, and what specifically the certificate authority in a domain does?  For instance there are two publicly available websites in my domain and both use a certificate we purchased from go daddy.  Could I use an internal certificate server to generate these instead of paying for them?
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James H
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How about machines that are members of the domain?  One site is OWA, the other is a citrix gateway for remote access.  I'm assuming that domain member machines would trust the certificate.
No, they would not. You would have to import the cert into the trusted root certification authorities folder for them to accept without error.