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OSx Mountain Lion server DNS resolution does not work without FQDN

I have a Mountain Lion Server (10.8.2) that will not resolve DNS names (coming from 2 different Windows 2008 DNS Servers) unless you use the FQDN.

nslookup server1
Returns "Got servfail reply from <dns server ip>, trying next server"

nslookup server1.domain.org
Returns correct IP address.

I tried adding the argument "-AlwaysAppendSearchDomains" to the mDNSResponder plist, does nothing. I flushed DNS cache, nothing. All DNS server addresses are correct on the Mac Server.

Any ideas?!
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1 Solution
Does your server have the appropriate domain names added under System Preferences > Network > Search Domains?
bbayachekAuthor Commented:
haha.. thanks a lot.. I've been at this for hours now and you just made me look stupid -__- that worked. Thanks!
Glad you have it sorted!
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