Setting up a DNS Server on a domain

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http://serverfault.com – I have a 2nd-level domain we'd like to use for mapping to our internal services on a linux server of ours. The domain is registered via 1&1, and I'd like to have the domain set up such that ns1.ourdomain.com, ns2.ourdomain.com, etc. point to static IPs we have assigned to our server, and any other subdomains besides these (+ the root domain itself) are managed by the name servers we have set up. Is this possible? Also, how does the interaction between a client and a nameserver work when the primary nameserver fails to resolve a domain (two cases: [1] ns is down [2] the record does not exi (HowTos)