Some strange things are happening in my set up. When I do an nslookup, dig or host command it doesn't look in my local /etc/hosts file. It seems to bi-pass my configuration and attempts finding it through my DNS server. Just to let you know how things are looking in my system:

/etc/resolve.conf
<domain info up here>
nameserver 127.0.0.1
nameserver myDNSserver

/etc/host.conf
order hosts,bind

/etc/hosts
contains the correct IP that I'm attempting to nslookup.

Also my /etc/nsswitch.conf file has something like:
hosts: file dns

Anyone?

That's because "nslookup, dig or host" are all DNS query tools, if you do a simple ping "hostname" it should work fine.