Verified if DNS Server is pinging and able to telnet on required ports – Resulted in success
Verified if ipconfig /registerdns is working – Failed to register DNS entries. Encountered error “RPC Server Unavailable”.
Upon further investigation found that “DHCP Client” Service is not running on the host. Encountered error ‘Access Denied’ when tried to start the service. Followed MS KB article http://support.microsoft.com/kb/895149, but those steps did not work.
Further googled to resolve the issue.. read in one of the article stating that problem persists when the server was infected with conficker virus/worm this issue arises. Even though the virus is cleaned. The issue will not be resolved. Particularly services which are configured to start with “Network Service” account.
Issue was resolved after installing Service Pack 2