Hmm, that all appears right. I assume if you try to "ping" or "nslookup" the name the address it resolves to shows up correctly from a command window?
Since you're trying 7.03 it probably isn't a huge deal to try 6.9.3 in a test setup since most of the .ini file is the same. The reason is pre v7.0 includes a "LOOKUP: <name>" entry in the logfile whenever it does a dynamic lookup. If you try 6.9.3 you could at least verify that it was trying to lookup the name...
Two other tidbits. If a name resolves to more than 1 IP address only the first is used. I don't think this happens with dynamic name resolvers but just letting you know. The other thing to check is if the name contains any numeric chars like 'mys1te' or something? Just in case I goofed something try it without any numbers to see if that makes a difference if the v6.9.3 shows it doesn't try to lookup the name...
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