My network works in the same way - split DNS system.
In my named.conf I use the forwarders directive to forward any name services requests to my ISP DNS servers. Then I set up my local zone files (forward and reverse) with forwarders set to nothing.
This means when a host on my internal network lookups up another host or address on the internal network, the local DNS is used. If the host looks up an external host or address, the request is forwarded to the ISP nameservers. See the sample named.conf file below:
options {
directory "/var/named";
coresize=10M;
max-transfer-time-in 60;
forwarders { 10.0.0.1; 10.0.0.2; };
forward only;
};
// reverse local zone
zone "0.0.127.in-addr.arpa" {
type master;
file "reverse.local";
};
// internal domain zone
zone "local.net" {
type "master";
file "local.net";
forwarders {};
notify yes;
};
// internal reverse domain zone
zone "0.168.192.in-addr.arpa" {
type "master";
file "0.168.192";
forwarders {};
notify yes;
};
Also, a really good resource for all things DNS is the ask MR DNS website:
http://www.acmebw.com/askmrdns