After seeing a few post and pulling from one forum and another I got this
issue re-solved so to make it easy for any one esle. This is what I did. If
after yout update your clients you get server unknown errors and login
scripts begin to fail because of server unknown error.

Step 1. Patch your Netware6.5 Sp3 server with
TCP update for NetWare 6.5 - TID2971698

Step 2. On the Client side change these setting.
Under Advanced Settings

Bad Address Cache Timeout Value of 0
Bad Server Name Cache Enabled Vaule of OFF
Bad Server Name Cache TimeOut Value of 0

Now all works just fine. Hope this helps anyone looking deep in the forums
for this info.