11.0 Rc1 Will Not Resolve Local Network Names.

I'm having a problem with 11.0 RC1 and resolving network names. I can ping by name site outside of our network, but anything inside the network fails with "unknown host". I have gone through all the settings in YaST, for example I noticed that the default gateway was not filled in. All IP addresses, DNS servers, etc. is supplied through DHCP. There is a proxy server, but this problem doesn't change even when a system-wide proxy is defined.

I'm at a loss to what else to look for.

That is usually the responsibility of the nameserver, which in your case is the one in the router. If the router collects the names that clients provide to it when getting a lease and associates it with the address given to the client, then name lookup will work. Often the router appends a local domain to the name, check in your router settings, so the name you would look for would be something like fred.localdomain, if the other machine is called fred.

Windows file sharing uses a different set of protocols, that's why it works in the absence of DNS lookup.

That is usually the responsibility of the nameserver, which in your case is the one in the router. If the router collects the names that clients provide to it when getting a lease and associates it with the address given to the client, then name lookup will work. Often the router appends a local domain to the name, check in your router settings, so the name you would look for would be something like fred.localdomain, if the other machine is called fred.

Windows file sharing uses a different set of protocols, that's why it works in the absence of DNS lookup.
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There are a variety of clients on this network, and there are three DNS servers. I have manually added the local domain name (ex: domain.local) in YaST. Total number of clients on this network is around 100.

Only 11.0 RC1 has this problem. I had 10.3 installed before with no problems. There is also Ubuntu 8.04, and Mac OS 10.5.3 clients that have no problem with resolving local names with their DHCP assigned DNS.

You should check the settings in /etc/resolv.conf, whether it appends the local domain name when doing a search of an unqualified name. You can check the resolution using the "host" or the "dig" programs. It's probably your settings, 11.0RC1 works fine resolving local names here.