I really wanting to get WPAD working. I set up the web server with the
proxy.pac and identical wpad.dat files. I set up a CNAME in our DNS server
and an NSLOOKUP of the name "WPAD" resolves correctly. When the proxy
server is manually identified I can see the files and the contents.

If I try to get a browser to auto-detect these settings, I get a message
similar to the following: (110) Connection timed out. Trying to go to the
WPAD URL gets the following message:

While trying to retrieve the URL: http://wpad.mhtn.com/wpad.dat

The following error was encountered:

Unable to determine IP address from host name for wpad.mhtn.com

The dnsserver returned:

Name Error: The domain name does not exist.

This means that:

The cache was not able to resolve the hostname presented in the URL.
Check if the address is correct.

Your cache administrator is webmaster.

What am I missing?