Invalid host address

[Dan Friedman]

I have a standalone that is getting "invalid host address" on every WindowsXP computers at a client's site.   From what we can tell, the XP machine logs into a domain (xxx.xxx.xxx.xxx).  Using WireShark, we observed that making a request in LC (our standalone) to our server, DNS lookup changed to the domain (xxx.xxx.xxx.xxx).  DNS Failed... it returns "invalid host address".   Same code on a standalone from 5.5.1 work fine.  Fails on 7.0.1.

The DNS query is overwritten and incorrect from the requested domain.  The domain matches the login of the host computer.  The url is correctly returned if using a standalone from LC 5.5.1, but is not correct with 7.0.1.  

On a clean install of Windows XP, and with the computer part of a workgroup and not logging into a domain, 7.0.1 is working ok

Any thoughts?