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CNAME
This associates an alias for a host with its canonical hostname.  The
canonical hostname is the one the master file provides an A record for;
aliases are simply linked to that name by a CNAME record, but don't have
any other records of their own.

Because many systems will also use /etc/hosts for DNS resolution, I
interpret the above to mean that you use an A record when there is an entry
in /etc/hosts for it.  If there is no entry for the system in /etc/hosts,
then use CNAME.  Okay, okay, I know this isn't black-and-white this way,
but this is how *I* interpret it.

There are admins out there who only ever use A records and never use CNAME,
which works just fine.  Outside of the NS, MX, and SOA pointing
requirements, It's your preference, I'd guess.

>One last question.  I have an internal 192.168.0.x LAN.  If there any
>reason not to place internal machines in the above zone file?
....
>Any problem with this other than people won't be able to reach that
>'inside' machine?

That *IS* the problem and the reason not to put them there.  You could,
though, have a separate NS that is only used internally that does and have
the internal machines have it listed also as DNS.

Lee Howard