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Thx seventhseal.
It appears I have two choices. If the domain stays hosted on the registrar's nameservers, (in my case ns.123-Reg.co.uk) the DNS settings made via the 123-Reg control panel have authorisation. The DNS settings set up by Plesk for each new domain are ignored. This works perfectly well, but I have to change or add 'A' and 'MX' records manually via 123-Reg.
If I want to control DNS from within Plesk, I have to enable my own nameservers on the VPS (e.g. ns1.myvps.com, ns2.myvps.com) and modify the Plesk DNS template to specify these servers whenever I select 'add a domain' in Plesk.
Then I just need to point all newly registered domains to my nameservers in the 123-Reg control panel.
Problem now is, I can't decide which method is best!. If I want to set up my own nameservers I should buy two additional IP addresses for the VPS, so other than having my server domain name shows up in WHOIS rather than 123-Reg, I'm not sure if there are any benefits?
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