not able to resolve by hostname

You are not able to resolve by hostname
http://forums.techguy.org/networking/994174-solved-ping-could-not-find.html
TCP/IP stack repair options for use with Windows XP with SP2 or SP3.
Start, Run, CMD, OK to open a command prompt.
Reset WINSOCK entries to installation defaults:
netsh winsock reset catalogReset TCP/IP stack to installation defaults.
netsh int ip reset c:\reset.log [also for Windows Seven]
Reboot the machine.
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http://forums.techguy.org/networking/1086453-ping-request-could-not-find.html

Make sure the following services are Started (Control Panel - Administrative Tools - Services).
DNS Client
Network Location Awareness
Remote Procedure Call (RPC)
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Also just to confirm go to the Command Prompt and do this:
nslookup
server 8.8.8.8
google.com
If you get a non-authorative response then you may have not done the GoogleDNS correctly.
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http://www.computing.net/answers/windows-2003/ping-request-could-not-find-host/11093.html
I understand you to say that local queries resolve but not remote ones. This means that you haven't configured a forwarder for your DNS server. Configure it to look at your ISP's DNS server for queries that it cannot resolve fro m the zones it hosts.