How to join a windows 2008 server into a local AD domain

Greetings,
I need help with instructions on how to join a Windows 2008 server to my local AD domain.
In my home lab I have a Windows 2008 R2 server that is configured as an AD 2008 Domain Controller.
I have a second server (Windows 2008 SP2), which I need to join into my DEVLAB AD domain.
When I attempt to do that via Control Panel -> Change Name -> Member Of: DEVLAB I get the following error:  An attempt to resolve DNS name of a DC in the domain being joined has failed. Please, verify this client is configured to reach a DNS server that can resolve DNS names in the target domain.

I also have the following Lmhosts information:

Lmhosts:

 192.168.1.47     DEVLAB-SRV1     #PRE #DOM:DEVLAB
 192.168.1.47    "DEVLAB         \0x1b" #PRE            
# 102.54.94.123    popular            #PRE             #source server
# 102.54.94.117    localsrv           #PRE             #needed for the include
#
 #BEGIN_ALTERNATE
 #INCLUDE \\localsrv\public\lmhosts
# #INCLUDE \\rhino\public\lmhosts
 #END_ALTERNATE

nbtstat -c:

Local Area Connection:
Node IpAddress: [192.168.1.74] Scope Id: []

                  NetBIOS Remote Cache Name Table

        Name              Type       Host Address    Life [sec]
    ------------------------------------------------------------
    DEVLAB         <1C>  GROUP           192.168.1.47        -1
    DEVLAB         <1B>  UNIQUE          192.168.1.47        -1
    DEVLAB-SRV1    <03>  UNIQUE          192.168.1.47        -1
    DEVLAB-SRV1    <00>  UNIQUE          192.168.1.47        -1
    DEVLAB-SRV1    <20>  UNIQUE          192.168.1.47        -1

So, I was hoping that if I can not resolve the DC in DNS (my DC is a local machne - 192.168.1.47), that I could use the Lmhosts file. For some reason that option is not being used - as you can see in the error message, it still attempting to resolve the DC in DNS.
I would be OK with iether solution - DNS or Lmhosts.

-Eugene