In Open Suse 12.2, when you have static IP configuration, /etc/hosts contains IP(for example a.b.c.d) and hostname entry. and everything working fine.

But when you set DHCP IP configuration using yast, new IP is retrieved from DHCP server and internet is also working fine.

But for DHCP /etc/hosts still contain previous IP - Hostname mapping of Static IP configurations.

So because of this, when you do nslookup for hostname, it will display static IP instead of DHCP ip.

I think, this is problem, Yast should remove entry from /etc/hosts file.