Question : DNS over a VPN-Tunnel

I recently setup a VPN tunnel connecting a satellite office to the Corporate office.  The IT Dept. at the corp office would like me to point the DNS to their Active Directory but I informed them that by doing that all internet traffic would go through their server first then out to the internet.  This would definitely affect performance.  Especially, if they were to download stuff it would basically download double since it would download it in the corp office then again on the tunnel.  What is the best way to go about getting the hostnames showing over the tunnel.  For security reasons I think they don't want to go by IP.  Also, there was a issue and both networks have the same domain.local for the local domain.  Can anyone see any immediate problems with this?

Answer : DNS over a VPN-Tunnel

OK...this makes more sense and you are better off than I originally thought.  You might consider creating a conditional forwarder for the other domain.  Follow the steps in the link.

http://www.windowsnetworking.com/articles_tutorials/DNS_Conditional_Forwarding_in_Windows_Server_2003.html