You can verify whether your DNS server is responding to queries by using the Nslookup command as follows:
1. Open a command prompt on your DNS server.
2. Type nslookup 127.0.0.1
3. If the server responds with localhost, your server is listening for queries. If it doesn’t respond, make sure the DNS Server service is running on your server.
For more information about using Nslookup, type nslookup help at the command prompt.
For more information on managing DNS servers, see my book Windows Server 2008 Server Core Administrator's Pocket Consultant from Microsoft Press.