how does /etc/resolv.conf work?

So, as far as I can tell, when a computer tries to lookup an IP address, it goes to /etc/resolv.conf and queries the first nameserver. If the first nameserver times out, it then goes to the 2nd, & so on. Based on an issue I am having, it looks as though if the first nameserver does not time out, but just does not have an entry for the query, it does NOT then roll down to the next nameserver to see if it has a valid entry.
Is this the case, and if so, is there a setting to make it roll down?

I do not use linux, and therefor do not know the format of a resolve.conf file. However, since you say it contiains the dns server list, I DO know how windows handles its dns server list. Also, logically, it makes sense that the way windows does it is the norm.

What you say is true. It starts at the first server. If the server is down, it will attempt the next server. Failed queries are NOT retried with other servers in the list. Most of the time this is merely a waste of bandwidth, cause in a perfect world, all working servers will return the same results. It is extremely unlikely that there would be an option to do otherwise, for that is not the purpose of having multiple servers in the list.