I have DHCP router giving IP's based on clients MAC address. When DHCP finds out that client has correct MAC address its tries to resolve its host name trough DNS. The problem is that DHCP doesn't resolve host names trough DNS. DNS is setup correctly. So I'm not sure where the problem is. DNS and DHCP are two different machines on two differnt IPs.

DHCP conf:

host smallfry {
hardware ethernet 08:00:2b:4c:59:23;
fixed-address smallfry.mydomain.com;
}


Maindomain's DNS master db:
smallfry IN A 10.0.0.202

Any suggestions where DHCP might have a problem resolving hostnames? DHCP resolv.conf has correct DNS IP and I don't know where else to look to fix this.

Thanks.

Have you tested the DNS from the dhcp server on the command line? Try:
dig smallfry.mydomain.com A

If this resolves the hostname then dns is working. As another test you may want to try using the IP address in place of smallfry.mydomain.com in the dhcp config to see if the dhcp is working.

When I 'dig' host name from other servers I get DNS reply. When I try to dig from DHCP server I get:

laptop.hostname.com does not exist (Authoritative answer)

I looks like DHCP is not talking to DNS properly. I have no idea what to do. resol.conf has the right DNS server in it.

Any suggestions?

Thanks!!

Can you post the contents of:
/etc/resolv.vonf
/etc/host.conf

Can you resolve other dns names such as:
dig www.google.com A