question on cache-only server

[Widjaja Jimmi]

Hi,
I have enquiry about DNS cache-only server.
is it possible to configure cache only server in our internal network
without having any qualified/registered domain for our network ?

I tried to configure this cache only server based on several manual/text
book. But I couldn't make it work properly.
for ex: I have machine of IPaddress 1.2.3.4 and configured as cache only
server
and i have machine 1.2.3.250 want to access internet using 1.2.3.4 as a DNS
server. they're both on the same subnet.
if I put 1.2.3.250 in resolv.conf of 1.2.3.250 machine, at the time I enter
command "nslookup", it's showing:
"can't find server name for address 1.2.3.4: non-existent host/domain"

but if I do ping to fully qualified domain name like : "ping www.yahoo.com"
it can resolve properly by showing that "www.yahoo.akadns.net is alive"
message.

What's wrong with the configuration ? Do I miss something ?
please help me on this...........

Regards,
Jimmi Widjaja