I must be overlooking something but ...
One of my bind servers has the 860 connected via usb. With the stock Qt ROM putting its usb IP into the 860's resolv.conf worked just fine (also set bind to accept queries from the Zaur's IP). With the only change being pdaXrom installation, and pinging working fine to 192.168.129.1 (the dns/gateway) entering that in resolv.conf again isn't doing the trick. "ipkg update" can't resolve www.pdaxrom.org - even though it resolves just fine for bind on the server.
Putting the ip for www.pdaxrom.org in hosts fixes it for the moment ... but that's not the real cure. So what am I not seeing?