Since you appear to already have DNS for your existing AD infrastructure, why are you setting up a second DNS server configuration here?
The following applies +if you do not already have DNS services+ on your local area network.
@Hoffman, I used that link to pretty much setup everything there. I believe everything went smoothly.
Something failed.
Once I followed those steps, I added the Mac as the ONLY DNS server on my Router. I was able to get access to the other Macs on my LAN (via FQDNs) both from the LAN and externally too.
Routers know nothing about DNS. Routers route packets, and those packets might be, well, anything.
Firewalls are specialized routers that have programmable packet loss capabilities.
But to be pedantic, routers and firewalls know nothing about DNS.
Now as for DHCP servers, services which are often embedded in gateway boxes, now those can ask for the address of a DNS server, so that they may provide that to DHCP clients. If your gateway is serving DHCP, that configuration would make sense.
However, my Internet does not work in this case.
That means DNS is wrong, or IP routing is wrong.
My forwarders are pointing to the DNS servers that my ISP provided on the Mac (under localnets).
Forwarders exist for a couple of reasons. They can serve to slow down your network connection (by adding an extra "hop" into the translations), or to connect to caching DNS servers (which
might be useful, particularly if a zillion hosts are all making the same general DNS translations; if not, you get that extra "hop" here), or as a way to connect to a DNS server that also implement nanny filters.
When first getting going with local DNS services, none of these will generally apply.
Put more simply, don't use forwarders until and unless you need to.
However, when I add both the Mac IP and ISP-DNS IPs as my DNS Servers in my Router, I get connected to the Internet, but I am not able to get to the local Macs with their FQDNs. I get a '400-Bad Request' html page.
Don't mix DNS servers in one specification. When you list multiple servers all listed together in a configuration or set-up somewhere, the specified DNS servers should be peers, and operating with the same zones and same hosts. Mixing your own DNS server(s) and remote DNS servers means, for instance, that you get the local values sometimes, and the remote values otherwise, and you're never sure which you'll get.
Your DNS server(s) are the point of contact with the remote DNS servers.
That 400 is an HTML error which implies you're getting connected to (guessing) the gateway.
Which implies an IP routing problem of some sort. Could be an external address, and a gateway that's not smart enough to re-NAT it. Or an IP addressing error. Or a DNS translation error.
What is your IP address space, and what are the addresses of your gateway or router, your DNS server, and your client.
Do the troubleshooting
dig commands listed in the article get you more information on the configuration?
And for completeness, what is the setting of the DNS server on the DNS server itself? That
must be 127.0.0.1 on the network controller, and only on that host. What is the DNS server setting on the clients? If the clients aren't using the DNS server received from the local DHCP server (or haven't received an update since the DHCP setting changed) they can have the wrong DNS address here.