Please forgive me, I'm new to DNS and I'm posting as a last resort since I've been trolling the forums for answers and I just can't figure out my issues. I've tried and failed at several ZCA and ZCS installs to this point because of DNS issues so I've started fresh and decided that I want the DNS fixed before the install.
Please keep in mind that I'm in a test environment on VMs to use this and so I cannot connect directly to RHN, only what our production loads have updated (meaning no bind9 just dnsmasq).

The setup is RHEL5 in a VM using dnsmasq to do the split dns, and the DNS server I want to point to is on Windows 2003 Server SP1 in another VM in the same vCenter.

In the Windows DNS I set up a Host(A) record for zimbra.domain.com pointing to the zimbra vm ip address and an MX record based off this A.

The output from the split dns wiki:

dig domain.com mx

Question Section:
domain.com. IN MX
Answer Section:
domain.com. 3600 IN MX 1 zimbra.domain.com.
Additional Section:
zimbra.domain.com. 3600 IN A [ZimbraVM IP address]

dig domain.com any

Questions section:
domain.com IN ANY
Answer Section:
domain.com. 600 in A [DNS Server IP]
domain.com. 3600 IN A [DNS Secondary IP]
domain.com. 3600 IN NS VMName.domain.com
domain.com. 3600 IN SOA VMName.domain.com host master 1821 900 600 86400 3600
domain.com. 3600 IN MX 1 zimbra.domain.com
domain.com. 0 IN TYPE65281 \# 20 00000000000000020000000384000000011405CCAC

Additional Section:
VMName.domain.com. 3600 IN A [DNS Server IP]
zimbra.domain.com. 3600 IN A [ZimbraVM IP]



host $(hostname)
connection timed out; no servers could be reached

cat /etc/resolv.conf
search domain.com
nameserver [DNS Server IP]


cat /etc/hosts
127.0.0.1 localhost.localdomain localhost
[ZimbraVM IP] zimbra.domain.com zimbra

/etc/dnsmasq.conf file
server=[DNS Server Secondary IP]
server=[DNS Server IP]
domain=domain.com
mx-host=domain.com,zimbra.domain.com,5
listen-address=127.0.0.1

Any suggestions, or pointing me to the right thread would be fine. I've been trolling threads for about a week now though, and I'm probably just missing what I need.
Thanks in advance for all your help!