DNS on PowerConnect 5524

I haven't used a 5524, but if it is the same as its predecessors it would be a layer2 managed switch, so it wouldn't serve DNS.  It shouldn't do any routing either.

Its layer 3.  I have routes and everything setup on it.

Are you sure?  According to this page its layer2:

http://www.nasi.com/dell_powerConnect-switches.php

And on the Dell site the 6224 says "Layer 3" in the description while the 5524 does not.  I can't see anything showing it supports layer3.  It may have some layer3 features but it isn't a true layer3 switch as far as I can tell.

Here is my config...

interface range gi1/0/1-24
spanning-tree portfast
exit
interface  gi1/0/1
switchport access vlan 2
exit
vlan database
vlan 2
exit
interface vlan 2
name CB
exit
interface vlan 2
ip address x.x.x.x 255.255.255.252
exit
interface vlan 1
ip address 192.168.0.1 255.255.255.0
exit
ip route 0.0.0.0 0.0.0.0 x.x.x.x
ip dhcp server
ip dhcp excluded-address 192.168.0.1 192.168.0.200
ip dhcp pool network trans
address low 192.168.0.1 high 192.168.0.254 255.255.255.0
domain-name xxx.local
default-router 192.168.0.1
dns-server 208.67.222.123 208.67.220.123
exit
hostname TRANS
username admin password encrypted 100e0d77cd7bc313652578139826707f263d232a pr
ivilege 15
snmp-server community public rw view DefaultSuper
ip name-server  192.168.0.1
ip host transerv 192.168.0.2






Default settings:
Service tag: <ADMIN NOTE:Service tag removed per privacy policy>

SW version 4.0.0.3 (date  03-Jan-2011 time  16:50:47)

Gigabit Ethernet Ports
=============================
no shutdown
speed 1000
duplex full
negotiation
flow-control on
mdix auto
no back-pressure

interface vlan 1
interface port-channel 1 - 32

spanning-tree
spanning-tree mode RSTP

qos basic
qos trust cos
eee enable
TRANS#