How is the nameserver found when server responds with SERVFAIL

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http://serverfault.com – I setup a DNS configuration for iodine.ninjanet.info, but when I perform a "dig iodine.ninjanet.info", I get a SERVFAIL, which leads me to believe I made a mistake in my configuration. I think I may have specified that the nameserver for iodine.ninjanet.info is iodine.ninjanet.info, so a circular dependency is created whereby a user must resolve iodine.ninjanet.info in order to resolve iodine.ninjanet.info (can someone confirm?). To my great surprise, if I perform "dig z11.iodine.ninjanet.info", the DNS server responds with a CNAME record (ie. somehow, dig was able to get an answer from my i (HowTos)