ok, after far too much time spent on this I've found two contributary factors that gave me this issue. I'll document them here for any poor soul who happens across this post in some sort of search...

1. The LAN DNS function appears to be case sensitive, which I believe to be a bug, and I've reported that to Draytek. The extra confusing thing here is that if it does resolve because you supply the correct case, then it's cached locally case insensitively. Very confusing.

2. My machine uses AVG Anti-virus, and the "Fake Website Shield" actually seems to intercept DNS requests, and resolves them with their own servers, regardless of what DNS entries you have on the connection. Consequently, if the domain entry *actually exists* then the AVG resolution process was providing the real IP, and it was only if it was a dummy address did AVG allow it to go through the normal resolution process. Turning off the "Fake Website Shield" restores the LAN DNS functionality.

Cheers,

Steve.

Oh dear!

I wish I had seen this earlier.

I've just bought a 2927 and have experienced the same-ish problem and it's nearly a year later.

First yes I did spot that the lookup is case sensitive (4.4.2.2)
intermittently I get "host not found" regardless of case.
I have also noted that one local DNS address resolves to an external IP address regardless of the local DNS setting.

The problem is so bad I've had to pull the 2927 from production and go back to a 2862 which is performing faultlessly, just slow.

I reported the problem to draytek support, but guess it's not a priority because you saw the problems a year ago and obviously on a different firmware, so I have no hope of a solution now because they clearly haven't bothered fixing it in a year.

Hay ho! Guess I have no upgrade path right now for the 2862's!