[ubuntu] DNS does not resolve

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http://ubuntuforums.org – I've had this problem forever, but now it's become a work issue and not just personal. I cannot ping any hostnames on our LAN /etc/resolv.conf has both name servers configured correctly. I can ping the IP, but can't ping the hostname. I know it's something really simple, just can't put my finger on it. I can ping www.google.com and external addresses...those resolve. (HowTos)