Specifies whether the computers to which this setting is applied attempt DNS name resolution of a single-label domain names. ...

Windows 7

Specifies whether the computers to which this setting is applied attempt DNS name resolution of a single-label domain names.

By default, when a computer (or the DC Locator running on a computer, to be more specific) needs to locate a domain controller hosting an Active Directory domain specified with a single-label name, the computer exclusively uses NetBIOS name resolution, but not the DNS name resolution, unless the computer is joined to an Active Directory forest in which at least one domain has a single-label DNS name. 

If this setting is enabled, computers to which this policy is applied will attempt to locate a domain controller hosting an Active Directory domain specified with a single-label name using DNS name resolution.

If this setting is disabled, computers to which this setting is applied will attempt to locate a domain controller hosting an Active Directory domain specified with a single-label name only using NetBIOS name resolution, but not the DNS name resolution, unless the computer is searching for a domain with a single label DNS name that exists in the Active Directory forest to which this computer is joined.

If this setting is not configured, it is not applied to any computers, and computers use their local configuration.

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