Thank you, thank you, thank you!
I've been living with this for a while now (at least since 10.5.5), and didn't take the time to research it. I would either just live with it, or reboot to fix it for a while.
What happens to me is that I run my own DNS server and DHCP server on an OpenBSD box that also acts as router/gateway/firewall. Well, I've been serving up 3 DNS servers via DHCP for a while; mine, and two that my ISP runs just in case. Mine was always primary, so should always handle requests. Usually it worked. Before having my MBP Unibody, I had an XP box which never had any DNS issues with the same OpenBSD box.
So, to resolve it, I removed the external DNS servers from the DHCP configuration. Now, it works!
What saddens me is that it seems that as time goes on, Apple breaks more and more standard *NIX functionality. DNS resolution has standards which state that you should only use backup DNS servers if the primary is unavailable. I don't believe earlier versions of OS X had these problems. I used to have a PB Ti and never had these issues, with the same DNS/DHCP configuration. They also broke their mail client when it comes to relaying email through an SSH tunnel. It worked fine in 10.1, but broke in 10.2 and onward. I haven't checked in a while, but I wouldn't be at all surprised if it were still broken.
One of the reasons I like OS X is that it's based on UNIX, not something proprietary. I just wish they'd quit making their version proprietary, thus ignoring standards. Stop being like Micro$oft, already! 🙂
Thanks again.