DNS not resolving on Server 2008

I have a Windows 2008 Server that is a DC and is acting as a DNS server.  The DNS forwarders are setup correctly and a forward and reverse lookup zone are configured.  I have several IIS Websites on this same server running on port 80 with a host header configured for each site.  I have created corresponding A records in the the Forward Lookup Zone in the DNS Manager for each host header.  So, for example, I have a website with a host header of "customer".  I have created the A record in DNS for "customer" and pointed it to the IP address of my server.  The PTR record is also updated in the Reverse DNS zone.  

The NIC on the server is set to use the servers IP address as the DNS server.  I am able to browse the web from the server.  

If I open internet explorer on the server and browse to http://customer, my IIS site with that host header is displayed.  However, if I go to another computer on the network, set the DNS server on it's NIC to the IP address of the server, I am able to browse the web from that computer.  This means that DNS is working.  However, If I try to access http://customer from another computer on the network, I get "The page cannot be displayed" error message.  So it appears that DNS is working for addresses outside of the local network, but is not able to resolve for internal addresses.  This has me completely confused.  I checked the SOA and it is the name of the server.  Why would the address resolve from the server and not from other machines on the same subnet using the same DNS server?  Any suggestions appreciated.
hardwyreAsked:
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Chris DentConnect With a Mentor PowerShell DeveloperCommented:

On the client, can you run:

nslookup customer

The page you get in the second instance would suggest it's getting to the server, but you don't have a host header for "customer.mydomain.local" (just customer), so it ends up at the default page.

Chris
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rynoxCommented:
Can you get to the site from a client if you browse to http://customer.yourdomain.com?

If you can, than you may not have set the domain suffix search order in group policy or DHCP.
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hardwyreAuthor Commented:
Ok, tried that from the client machine.  If I browse to:

http://customer.mydomain.local

I am presented with the IIS default website default page.  Any ideas?
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