VPN connections causing DNS issues for local domain.

Is the user connecting from a Windows machine? If he/she is just connecting using Windows' built-in VPN client, you can modify the properties of the connection to prevent it from registering its DNS address by:

- Right-click the VPN connection and select Properties.
- Click the Networking tab.
- Select Internet Protocol (TCP/IP) and click the Properties button.
- Click the Advanced button.
- Click the DNS tab.
- UNCHECK the "Register this connection's addresses in DNS" checkbox.
- Click OK until you close out of all windows.

The users are using a checkpoint VPN client.

That's fine... the checkpoint client probably dynamically creates a "virtual" network adapter at the time of connection.
Do you use group policies in your network?

One option is to disable this setting in group policy... When your client PC gets his 10.x.x.x address from DHCP, the DHCP server should register that connection in DNS for the client and the PC setting becomes unnecessary.
The other option is to have the user connect to the VPN, then when the virtual adapter shows up, if its not already there, you can disable the setting at that time.
 

Yes, we do use group policies in our network.  Are you saying to disable the setting on all connections and then just let the DHCP server register the client with DNS?  If so do you know where in the GP setting is located?

I would just disable it in the vpn virtual adapter setting manually to start.

I just talked to the user and they were using the checkpoint but have now switched to a Juniper client and it does create a connection only when connected.  I had the user uncheck the setting when he was connected and then reconnect and the setting stayed.  I think this is going to fix the issue.

Nice. Let me know.