I have set up a Hyper-V VM with Ubuntu and installed Zimbra 8.0.0 into it but I am still having issues.

At the moment if I send a test email I get the below response:
This is the mail system at host vmmail.localhost.
I'm sorry to have to inform you that your message could not be delivered to one or more recipients. It's attached below.
For further assistance, please send mail to postmaster.
If you do so, please include this problem report. You can delete your own text from the attached returned message.
                   The mail system
<gsmith@gsmith.biz>: Host or domain name not found. Name service error for
    name=vmmail.localhost type=A: Host not found
So I started looking at this guide and noticed the following:
If I run the following command
dig gsmith.biz any
Then I get this response
; <<>> DiG 9.8.1-P1 <<>> gsmith.biz any
;; global options: +cmd
;; Got answer:
;; ->>HEADER<<- opcode: QUERY, status: NOERROR, id: 55489
;; flags: qr rd ra; QUERY: 1, ANSWER: 4, AUTHORITY: 0, ADDITIONAL: 0

;gsmith.biz.                    IN      ANY

gsmith.biz.             2521    IN      MX      10 mail.gsmith.biz.
gsmith.biz.             2521    IN      NS      ns43.domaincontrol.com.
gsmith.biz.             2521    IN      NS      ns44.domaincontrol.com.
gsmith.biz.             2521    IN      SOA     ns43.domaincontrol.com. dns.jomax.net. 2012100803 28800 7200 604800 3600

;; Query time: 16 msec
;; WHEN: Thu Oct 18 15:25:09 2012
;; MSG SIZE  rcvd: 153
Now from this information I get that I am missing a "A Record" so I went back to the guide and got lost instantly.

    If named runs in a chroot'ed directory (i.e. /var/named/chroot), named.conf should be placed in 
/etc/named/chroot/etc/named.conf and you should create a symbolic link to /etc/named.conf,
I have no idea what this means.
in my named.conf.local I have the following

// Do any local configuration here
        zone "gsmith.biz" {
                type master;
                file "/etc/bind/db.gsmith.biz";
// Consider adding the 1918 zones here, if they are not used in your
// organization
//include "/etc/bind/zones.rfc1918";
In /etc/bind/db.gsmith.biz
; BIND data file for local loopback interface
$TTL    604800
@       IN      SOA     mail.gsmith.biz. info.gsmith.biz. (
                              2         ; Serial
                         604800         ; Refresh
                          86400         ; Retry
                        2419200         ; Expire
                         604800 )       ; Negative Cache TTL
@       IN      NS      localhost.
@       IN      A
@       IN      AAAA    ::1
vmmail  IN      A
        IN      MX      10 mail
Hosts file
Code:       localhost       vmmail.localhost        vmmail

# The following lines are desirable for IPv6 capable hosts
::1     ip6-localhost ip6-loopback
fe00::0 ip6-localnet
ff00::0 ip6-mcastprefix
ff02::1 ip6-allnodes
ff02::2 ip6-allrouters
Further information:
IP of VM -
Hostname of VM - vmmail