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Im a new nominet member and looking at the DAC service, does it offer a newbie tool for searching multiple domains with? And the IP address its asking for, do you need a server to check, not just your home IP?
Nominet don't provide any tools and you'll struggle to find many off the shelf that supports the DAC - DNA pro appears to but I've never used it so can't say how well it works: http://blog.domainpunch.com/tag/dac-nic-uk/
You can use any IP addresses, including your home IP.
Only problem with home IP address is that many providers will change IP address frequently to prevent you from having a "free" fixed IP address.
The DAC is simply access to an IP port that will return a subset of the WHOIS data, how you use it is entirely down to you, but there's no fancy search system from Nominet.
If you want to do dropcatching, be aware that a plain residential Internet connection is not the best. You would rather invest in proper hosting for this specific purpose.
Do a search on "DAC hosting" to understand why.