Under what conditions would the following occur? From a given OSX machine on an internal network:

$~ cat /etc/resolv.conf
nameserver 10.102.120.7
nameserver 10.102.120.2

From the same machine:

$~ dig @10.102.120.7 in.local
<snip> ...
;; QUESTION SECTION:
;in.local.                      IN      A

;; ANSWER SECTION:
in.local.               43200   IN      A       10.102.123.30
<snip> ...

And yet, this workstation cannot ping in.local, nor load pages hosted by apache on that machine. 10.102.123.30 is definitley up (2 OSX machines I know fail to resolve in.local - but other machines on the network can). I have also checked their /etc/hosts to see if anything there might interfere... Not sure what else to check...