Configuring Windows to use local DNS server (Windows 2000)

First Double click the "Network and Dial-up Connections" icon in the Control Panel:

Then right-click the icon for the network connection and select "Properties" from the pop-up menu:

Then in the connection properties dialog, select "Internet Protocol (TCP/IP)" and click the "Properties button":

In the "Internet Protocol (TCP/IP) Properties" dialog, check "Use the following DNS server addresses", and enter the IP address of the local DNS server (*) as the "Preferred DNS Server":

Finally click "OK" both in the "TCP/IP Properties" and "Network" dialogs to save your changes.

(*) The DNS server IP address must match an IP address that Simple DNS Plus is configured to listen on in the Options dialog / DNS / Inbound Requests section.
If you are configuring the computer which Simple DNS Plus is running on, you can use 127.0.0.1 (see below) - otherwise you must use an IP address which is accessible over the local area network.

Windows 2000 and DNS server 127.0.0.1

If you try to enter "127.0.0.1" as DNS server in the TCP/IP configuration of a Windows 2000 computer, you will get the following error message:

IP addresses starting with 127 are not valid because they are reserved for loopback addresses. Please specify some other valid value between 1 and 223.

This only happens in Windows 2000 and we have no idea why Microsoft did this. But they must have realized that this was a mistake because this doesn't happen in later Windows versions such as XP and 2003.

To solve this, we have created a small tool which can set the DNS server to 127.0.0.1 on Windows 2000.
Simply download and run: setdns127.exe