We have a Windows 2003 Terminal Server which is also one of two DNS servers for a single domain enterprise. The terminal server users run an ERP application called Encompix which uses a Progress database, currently version 9.4. The Progress database and application are located on another server. Intermittantly the users get disconnected from the application and receive the error "Unable to find host encompix.bluesky.local in file HOSTS or HOSTS file not found in expected location (5193). When this occurs, pinging the FQDN encompix.bluesky.local returns a host not found error. Normally a ping to the FQDN returns a response. Pinging the NETBIOS name always returns a response. Entries appear to be correct in DNS. A bitmap of the error is attached. The event log does not appear to be logging the error. Not sure why the application is looking for a HOST file in the first place. The ERP application has a .ini file with the FQDN of the server registered in it. To change to the NETBIOS name would require reapplying for the software license, so this is an undesirable option. Let me know if further information is needed.