NetBIOS and Hostname resolution for Microsoft Client and LAN Manager 2.2c Client

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This behavior is by design.

Host Name Resolution

If the LAN Manager 2.2c or Microsoft Network Client 3.0 is attempting to resolve a host name, it will use the gethostbyname() call, that is resolved by entries in the HOSTS file and, optionally, a Domain Name Service (DNS) server. These clients DO NOT use WINS, LMHOSTS or broadcast to resolve hostnames. For information on configuring the Domain Name Resolver (DNR) for these clients, see the Readme.txt on the appropriate clients directory where you installed from.

NOTE: This is different behavior than the Windows For Workgroups, Windows 95, and Windows NT clients that can also resolve hostnames through WINS, LMHOSTS files and broadcasts. For more information about node type settings in Windows For Workgroups, Windows 95, and Windows NT, please see the following articles in the Microsoft Knowledge Base:

NetBIOS Name Resolution

If the LAN Manager 2.2c client or Microsoft Network 3.0 client is attempting to resolve a NetBIOS name (for example, using the 'NET USE' command), the name may be resolved using LMHOSTS entries, WINS query, or broadcast. These clients do NOT use DNS or HOSTS queries to resolve NetBIOS names.