Hi all. I too was having the issue where local PCs were having their IPs resolved to non local addresses. This is related to using OpenDNS as your DNS server. The resolution in the FAQ, which states that you shouldn't redirect your DNS servers was not acceptable to me as using OpenDNS is a vital part of my home network security. As it turns out, there's a much easier way to do this and it allows you to keep your router looking at OpenDNS for DNS resolution. Worked perfect for me.
Stacey
http://forums.opendns.com/comments.php?DiscussionID=3670
Here's the relevant post:
smarttech
Apr 22nd 2009
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Everyone keeps saying to add a VPN typo exception. There is a better and much easier solution. Go into the advanced settings of your network and uncheck the "Enable Typo Correction" option under Domain Typos. Then go to the bottom of the page and hit "Apply". Wait about 30 seconds (possibly up to 3 minutes) and try to ping the same internal computer name as before and you should see the local IP address displayed once again.
Also, when you ping a name that is not resolvable, you will now get a "Ping request could not find..." error instead of it resolving anything and everything you try whether it exists or not.