ok here is what the guy said he did:
moved the problem computers from the old Active Directory OU "computers" to the other OU "SBSCOMPUTERS". I modified group policy to allow turning off "Offline Files" on the clients.
I disabled WINS on the server and modified the DHCP scope options to force NETBIOS off and force the DNS suffix to "versalifteast.local". This forces all name resolution to use DNS instead of NETBIOS.