This KB has been around for a while now and i cant believe that this has not been turned on by default yet… Basiclly when you create a DFS path you enter a name to the target of the link or the namespace server and the name is always saves as a NetBIOS entry (very old school). This can cause lots of issues if you are dealing in a site that has multiple sites with no WINS enabled not to mention lots of broadcasting on the LAN trying to resolve the name. SO the KB to enabled DNS for DFS Referals is…
Once you make the DfsDnsConfig = 1 change just restart the DFS service and you laughing… unless you have already created the target or the namespace server but dont stress there is a way to convert (kinda) it to DNS.
Targets – If you have a DFS folder with multiple targets just delete and re-create the target one at a time being sure you specifiy the FQDN address to the path.
Namespaces – If you have multiple namespace server (which is an absoulty must) then simply remove one of the name space servers at a time and then re-add it again with the FQDN address… but be sure that there is always one DFS NameSpace server online as if you delete the only working one an the other is dead you could lose all you DFS configuration information.