I've got a bordermanager proxy server v3.7 sp2
configured as a child CERN proxy server
bordermanager is also DNS server in workstation ip configuration

all workstations internet explorers (6.0) are configured to use the BM

proxy ip address.

I,ve also got an internal webserver that workstation need to contact.
configured my Bordermanager server's hosts file with the following

however when i try to connect to this web server I get the message

502 bad gateway
DNS resolution failed

External web sites work fine

any ideas?