Specifies that NetBIOS over TCP/IP (NetBT) queries are issued for fully qualified domain names. If you enable this policy ...

Specifies that NetBIOS over TCP/IP (NetBT) queries are issued for fully qualified domain names. 

If you enable this policy setting, NetBT queries will be issued for multi-label and fully qualified domain names such as "www.example.com" in addition to single-label names.  

If you disable this policy setting, or if you do not configure this policy setting, NetBT queries will only be issued for single-label names such as "example" and not for multi-label and fully qualified domain names.