This article is from the AmiTCP/IP FAQ, by Mike Meyer with numerous contributions by others.
A domain name server (DNS), put simply, is a massive address book of the Internet, It enables the user to use hostnames while not having the hostname listed in their Amitcp:db/hosts file.
A partial named implementation is on ftp.demon.co.uk. However, as someone who has set up his own name server, I would recommend that you use someone else's. :-) DNS is quite a complex system, and unless you are running a massive network, you don't really need your own.
For more information on DNS, consult a TCP/IP book.
 
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