Answer for:

Can't access LAN clients via name. But can via IP address

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If client name resolution only works with the Win2000 Server's IP as DNS then that server is acting as your DNS server. Unless it's also a proxy server you should find that leaving the server's IP as DNS and using the router's IP as default gateway works for both Internet and name resolution. If the Internet still doesn't work with that configuration it means your Win2000 DNS server doesn't know how to find addresses of web sites out on the Internet. If that's the case Google 'DNS forwarder'.