Yeah, chances are good it's just your ISPs DNS goofing up.
I'd just delete the entry that isn't working, or move it to the bottom.
Also, you'll want to check out your nsswitch.conf file too, that's where the computer will know in what order it should try doing DNS.
This is the section that you're ineterested in ( example of mine )
#hosts: db files nisplus nis dns
hosts: files dns
Files checks /etc/hosts, dns uses the stuff in resolv.conf
If you can telent on port 53 to your DNS servers, then you should be resolving, try using dig
www.google.com as well ( assuming you can connect )...that should work.