DNS resolution between the local network and a site to site vpn network.

If you have a DNS server on each end, and if the two sites are NOT on the same domain, you can use conditional forwarding to resolve names.  On Site A's DNS server, add a forwarder on your DNS server and specify that it is for Site B's domain only, then specify the IP address of Site B's DNS server.  Then do the same at the other end, adding Site A's DNS server to Site B's as a forwarder for Site A's domain.

If you need more specific instructions on how to do this, post back and I'll give you the step-by-step.

VPN went down. I will try your suggestion when I get he VPN issue resolved. Mabey the VPN going down is the problem. I am not sure when today it went down or why.

Another thing you want to make sure is enabled is NetBIOS on the server's NIC as well as the client NICs. Also some VPN routers are able to do NetBIOS pass-through. See if your VPN tunnels have this enabled.

VPN back up. My immediate problem is solved by adding a line in the host file fo the servers. I added site b's dns address as a forwarder but that did not solve the problem. Site A still could not reach site B by host name. Do I need to add records to B's DNS? I cannot configure site B until tomorrow morning. I must resolve this issue tomorrow. Any more suggestions?

A couple of questions so we can get a better idea of your layout...

1) What kind of hardware/software do you have in place for the VPN tunnel?
2) I noticed in the Zones portion, are you also using ISA as well?
3) Are you running a DC/DNS on both sides?

DNS on office side. Trying to set up simple DNS program on remote side bt not having much success.

No ISA.

Linksys wvr200 on remote side, Cisco 2800 router on office side.

Adding A records on office DNS solved the problem on that side. Cannot get Simple  DNS working on remote side.