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SBS 2008 DNS not responding

I have a site running SBS 2008. Clients complain that the Internet keeps dropping. The problem is DNS is not responding. In the system event log on all client computers there is:
Event ID 1014 Source DNS Clients Event "Name resolution for the name timed out after none of the configured DNS servers responded."

This does not appear to happen to all clients at the same time but it is hard to say for sure since they are not all browsing at the same time. It does happen 2 - 5 times a day on most computers.

Since it is on all computers it is unlikely that it is a client issue. I have tried disabling IP6 on clients and server. There is nothing in the server logs regarding DNS issues.
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Miftaul H

On the dhcp server can you add a second dns to public dns server say, so clients get alternate dns. When your local dns fails to respond, the alternate dns replies to clients dns queries.

Did you check the root hints on yoir dns server. Can you do "dnscmd /clearcache" on dns server. Remember it will clear all dns cache on server.
For starters don't disable IPv6 on an SBS server - this can cause all manner of issues.

It may be worth setting up a running ping to the server and see if that drops at any time during the day, if so then the issue isn't just DNS, it's network connectivity as a whole.

Also check the server performance - memory usage, disk queues, etc. If the server is been overloaded it may not respond to requests as quickly as the client computers may like.
"When your local dns fails to respond, the alternate dns replies to clients dns queries."
Unless the name resolution is for an internal server.

Are your DNS servers multi-homed by any chance?  Do you have more than one DNS server?
Try rerunning the internet connection wizard.
If anything is flaky ,that usually is the first step.
Also ,you may want to run the SBS best practices analyzer just to see if there are any tweaks that need applied.
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DNS does hand out a secondary DNS server -  

I gave the users a test file to run. It pings the server by name and then by IP. It always responds to the IP so the server is not going offline.
I monitor the network and am able to see processor history. It does spike. I will focus a bit more on that.

Right now w3wp.exe is staying around 20%. I'll see if I can stop IIS
When in doubt on SBS,run the wizards.

Everything you learned about fixing stuff on a regular Windows server manually is to be a last resort.

Run the wizards first,do not Mickey Mouse around playing with settings manually.
run dcdiag /test:DNS from an elevated command prompt and post the results.
also run and post the results.
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Olaf De Ceuster
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I did run BPA and found a few issues that may be related. I should know in a couple days if they worked
Also you might want to check forwarder and root hint settings on your DNS servers.
"DNS does hand out a secondary DNS server -  "

This seems to be an external dns server - remove this from your DHCP options so that the only dns servers used by the computers are internal to your network.

If the computers try to use this to find the internal server by hostname it will likely fail which would cause the issue you are seeing.
I always add a secondary DNS server to DHCP. This way when the server is being rebooted or offline for any reason, users can still get to the internet.

The problem is getting to Internet sites. The first DNS server should always respond if it is online. The second one should only respond is the first one is office. Either way, client computers should be able to resolve Internet names.
M$ in their infinite wisdom chose to use dns as their discovery tool in the new versions of server as the way of finding resources(as opposed to netbios and wins).
Funny thing is, you're still dealing with wins and netbios after all these years.

Having a secondary dns server in the dhcp scope can cause flaky thing to happen.
I have not heard of any issues in  while so I am assuming the fixes from BPA did it