Cool, glad you mentioned this! I've used namecheap for a while and never noticed this feature! This will save me the trouble of having an outside service for DDNS.
For anyone else looking for this feature, log in to namecheap.com and click Manage Domains, click the domain you want to use DDNS with, then look for the Dynamic DNS link on the left menu under Miscellaneous.
I decided to switch to Namecheap just for this feature. Their domain interface isn't fantastic (it's good enough), but it allows me to consolidate all my DNS management there, plus I don't have to use extra services to update my hostnames, AND ddclient supports their API directly.
+1 for namecheap. You don't even have to pay for anything. I started using DDNS at Dyn and then ended up registering a bunch of domain names. Now I'm going to move them to Namecheap which already does my DNS (for free) and now DDNS.
If you don't use namecheap, then you're doing it wrong ;)