Windows 2008 R2 DNS Server Problems

I have a single Windows 2008 R2 DC in my domain, and recently it stopped responding to nslookups (From both clients and the server itself).  The odd thing though is that when I ping a URL, the system resolves the IP address.

In the event viewer I get 1014 Events / Source "DNS Client Events": "Name resolution for the name ______ timed out after none of the configured DNS servers responded."

What is going on here?
nslookup:

www.hp.com                      

Server:  UnKnown                  
Address:  10.1.1.86                                                 
DNS request timed out.                timeout was 2 seconds.        
DNS request timed out.                timeout was 2 seconds.        
*** Request to UnKnown timed-out  >    

ipconfig /all                             


Windows IP Configuration
   Host Name . . . . . . . . . . . . : ACME1
   Primary Dns Suffix  . . . . . . . : ACME.local
   Node Type . . . . . . . . . . . . : Hybrid
   IP Routing Enabled. . . . . . . . : No
   WINS Proxy Enabled. . . . . . . . : No
   DNS Suffix Search List. . . . . . : ACME.local
Ethernet adapter Local Area Connection:
   Connection-specific DNS Suffix  . :
   Description . . . . . . . . . . . : Microsoft Virtual Machine Bus Network Adapter
   Physical Address. . . . . . . . . : 00-15-5D-03-05-00
   DHCP Enabled. . . . . . . . . . . : No
   Autoconfiguration Enabled . . . . : Yes
   IPv4 Address. . . . . . . . . . . : 10.1.1.86(Preferred)
   Subnet Mask . . . . . . . . . . . : 255.255.255.0
   Default Gateway . . . . . . . . . : 10.1.1.2
   DNS Servers . . . . . . . . . . . : 10.1.1.86
   NetBIOS over Tcpip. . . . . . . . : Enabled

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tballinAsked:
Who is Participating?
 
GovvyCommented:
In DNS Snapin for 10.1.1.86 host what are set in forwarders tab for ACME.local zone?
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Gary ColtharpSr. Systems EngineerCommented:
I'll start small... dns service running? Can you access the DNS settings? Can you run NSLOOKUP from the tools inside the MMC?
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tballinAuthor Commented:
The servers listed there were given to me by my ISP, however they were not responding.  Turns out the ISP made some changes and I never got the message.

Thanks!
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Gary ColtharpSr. Systems EngineerCommented:
I think Govvy deserves the points as he sent you down the forwarders road....

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tballinAuthor Commented:
That's what I did, and that's what shows on my end - are you seeing something else?
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Gary ColtharpSr. Systems EngineerCommented:
No... I posted before it had applied the points. Glad you got it fixed!
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