Windows Does Not Parse LMHOSTS File with DNS Enabled

Windows does not parse the LMHOSTS file if DNS (Domain Name System) is enabled.

Windows does not parse the LMHOSTS file to obtain the IP addresses of other computers if DNS is enabled. Therefore, a Windows workstation cannot connect to servers listed in the LMHOSTS file.

To work around this problem, preload the LMHOSTS entries into the NetBIOS name cache using the #PRE option in the LMHOSTS file. For information about the syntax for the #PRE option, please see the Lmhosts.sam sample file in the Windows folder.

Microsoft has confirmed this to be a problem in Microsoft Windows.