an active directory domain controller for the domain xxx.local could not be contacted

I'm in the process of migrating our SBS 2003 to a new upgraded machine.  when i attempt to join the destination server to the domain using dcpromo i get the following error:

The following error occurred when DNS was queried for the service location (SRV) resource record used to locate a domain controller for domain trg.local:

The error was: "This operation returned because the timeout period expired."
(error code 0x000005B4 ERROR_TIMEOUT)

The query was for the SRV record for _ldap._tcp.dc._msdcs.trg.local

The DNS servers used by this computer for name resolution are not responding. This computer is configured to use DNS servers with the following IP addresses:

128.0.0.1

Verify that this computer is connected to the network, that these are the correct DNS server IP addresses, and that at least one of the DNS servers is running.

i'm able to ping the source server and have tried a few other items but I seem to have hit a wall.

Thank you.
JaceallanAsked:
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willettmeisterCommented:
Make sure that the new server is setup to use the existing DNS server for the domain most likely the ip for the old server.  Also make sure that their are no firewalls blocking port 53 (DNS) between the new server and the DNS server.   This is completly a DNS issue.
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Glen KnightCommented:
Looks like a typo on the loopback address. It's always good practice to use the actual IP address of the server even if it is itself.

It should be 127.0.0.1 rather than 128.0.0.1 fir the loopback address
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