Configuring Dns Forwarding Correctly on an SBS Server
In our experience, all versions of SBS from 2003 to the last 2011 version need DNS forwarding tweaks to avoid problems with name resolution on the network.
Two things that should always be done:
1) Set a forwarder, point it to the router IP address, or to a known stable Internet based DNS server (the latter can be faster, but is less robust if ISP or Internet based DNS server address is changed):
2) Configure updated Root Hints, by querying the router for latest hints: