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Getting a dns server of 127.0.0.1 on client workstations

I have a new DC with DNS and DHCP roles
DHCP seems to be working since it hands out appropriate address.  DNS also appears to work since the server can get on the net.

In the router I point local dns to 192.168.1.10 which is the DC.
All the workstations have a DNS server in ipconfig of 127.0.0.1 though.  WTH?
If I change the dns server in the properties of the Ethernet adapter things seem to work fine

I have some errors in dcdiag

 Testing server: Default-First-Site-Name\DC
    Starting test: Advertising
       ......................... DC passed test Advertising
    Starting test: FrsEvent
       There are warning or error events within the last 24 hours after the
       SYSVOL has been shared.  Failing SYSVOL replication problems may cause
       Group Policy problems.
       ......................... DC passed test FrsEvent
    Starting test: DFSREvent

     Starting test: SystemLog
        A warning event occurred.  EventID: 0x00000420
           Time Generated: 08/31/2012   04:14:49
           Event String:
           The DHCP service has detected that it is running on a DC and has no
redentials configured for use with Dynamic DNS registrations initiated by the D
CP service.   This is not a recommended security configuration.  Credentials fo
 Dynamic DNS registrations may be configured using the command line "netsh dhcp
server set dnscredentials" or via the DHCP Administrative tool.
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ccampbell15
Asked:
ccampbell15
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1 Solution
 
Kruno DžoićSystem EngineerCommented:
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ccampbell15Author Commented:
Tried that and it does not make a difference.  It is DHCP though.  When I kill that role on the server and use the router the workstations get the ip of teh router for DNS and they can all get online.  I guess I don't fully understand how DHCP assigns the dns server ip to the workstations.

The login creds I used for dhcp are the adminstrator
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ccampbell15Author Commented:
Further update

I just tore down the Server and reloaded windows.  The get the exact same thing so I'm doing something wrong but can't see it.  DHCP is working since it hands out ip's and DNS works since I can get online with the workstations as long as I set the DNS server ip in the adpater.

I just don't understand why the local workstations are getting an IP of 127.0.0.1
DCdiag is clean
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David Johnson, CD, MVPOwnerCommented:
check that your dns server is not using 127.0.0.1 but a proper static ip address
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ccampbell15Author Commented:
Minor Lee Campbell proble,
I used the wizrd to set it up and one of the windows asks the ip of the dns serever which is 128.0.0.1 by default.  I looked at it quickly and assumed it would be OK since that would work fine on the server.  However, it also ends up being the IP of the DNS server that gets ported out to the workstations.  Duhh!
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