DNS works fine but nslookup doesn't know NS

Ok, I have set up the bid files, all is well, sites up on the web the server servers the web for itself I just ran the checkdns.net and all looks peachy, except if I go to my terminal and do a nslookup for anything, it tells me

*** Can't find server name for address XX.XXX.XX.XX: Non-existent host/domain
*** Default servers are not available

Oh this is a OS X server,
So I looked in the resolve.conf file, added the domain directive, but nothing, but it is working fine as for showing everone else it just does this very odd and I have no errors in my system log, any ideas.

I am thinking of reinstalling BIND, cause my setting up has not been the cleanest let's just say I made plenty of mistakes.
Ok
Give it a shot
THanks

So I little cleaner description
1. The server is hosting the sites and they are found throughout the web
2. system.log concaints no errors
3. checkdns.net - approves all bind settings

4. But the local terminal trying to do nslookups gives my the
*** Can't find server name for address 24.173.66.66: Non-existent host/domain
*** Default servers are not available

error

Oops to much coffee.

Ok ladies and gent's out there in lala land.
After trying a dig and everthing worked fine. I came across an article with my same problem from Orielly's site.
So in the future if your NSLOOKUP does not work and your DIG does work, then what they said it is because I don't have my ISP's DNS address in my system preferences then it won't work, sounds about right, cause I had changed that.

New Question For Any one
because I don't have my ISP's DNS address in my system prefernceses will this cause trouble in the future, should I put it back in the DNS settings, etc.
Thanks