Perhaps it's just me, but having read your post several times I still have no idea what it is that you're trying to achieve.
Originally Posted by patmartini
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Local networking appears to be disabled, WAN access works fine.
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I really don't understand what that means. What is 'local networking'? Either your machines have a working network connection or they don't. My best guess would be that your machines are unable to resolve hostnames of other machines in your organisation but are able to resolve hostnames such as news.bbc.co.uk or gadgets.boingboing.net. But that is just a guess.
Perhaps if you post less rant and a clear explanation of what you're trying to achieve you'll get some useful replies.