Before we install Microsoft DNS server we need to check our TCP/IP protocol settings.
Right click on Network Neighborhood and choose Properties.  Select the Protocols tab.  Double click on TCP/IP Protocol.  Choose the DNS tab.  Make sure host name and the domain name are correct.  This will help speed up the installation of the server as some files will be automaticly generated using this information.  You can enter the IP address of the soon to be created DNS server now if you want, if you don't, you'll have to do it later .  Verify your other settings and OK your way out.  Restart if necessary ;-)  If you did not make any changes you can leave this window open and select the Services tab.

Adding the DNS Service.
Right click on Network Neighborhood and choose Properties.  Select the Services tab.  Click on Add.  Choose Microsoft DNS Server.  Point to your i386 directory and restart.

Configuring the DNS service.
Open the DNS manager from Administrative Tools (Common).  Click on DNS > New Server and enter the IP address of your server and click OK.
Right click on the new ip address under Server List and select New Zone.  Select Primary Zone > Next Enter the Zone name.  This is the name of your domain.  When you hit tab it will automaticly create the name for the Zone File.  Next > Finished.
Right click on the ip address under Server List again and select New Zone again.  Select Primary Zone > Next.  This Zone name is a little more complicated. (in-addr.arpa)  It is used to get the Host name from an IP address.  It is the netmask portion of you IP address backwards with a little extra.
Example:
My IP address is 192.168.10.46/24 or 192.168.10.46/255.255.255.0 so my network portion would be 192.168.10  (Do you get that?)  Therefore my zone file will be 10.168.192.in-addr.arpa
Enter your in-addr.arpa zone and Tab to create the Zone File.  Click Next > Finished.

Chances are your server only has an entry in the first zone file we created.  Check your two zone files but I think you will only find an A record.  (If we add the in-addr.arpa zone first will it be in both locations?  Could save this step, check when you remember to)  If the server does not have a PTR record in the in-addr-arpa then delete the A record from the first zone file we created.  Now right click on that same zone and select New Host.  Enter your host name and IP address and check Create Associated PTR Record.  Click on Add Host (wait) then Done.

Testing our DNS server.
Start > Run > cmd
At the command prompt type:
    nslookup <hostname>
Where <hostname> is the name of your server.  You should get
    Server:  <Hostname>.<Domain>
    Address:  <IP Address>

    Name:  <Hostname>.<Domain>
    Address:  <IP Address>

Rockin, if you want more info try support.microsoft.com