dns - Android terminal not able to nslookup?

Every time I try to telnet to a domain on my LG Ally it fails, but it works if I use an IP address. So I tried to use nslookup telehack.com and it returns:

Server:       0.0.0.0
Address 1:    0.0.0.0


nslookup: can't resolve 'telehack.com'

I have Android Terminal Emulator and BusyBox installed,

It wasn't working with the default dns, so now I've got my dns entries set to OpenDNS, and it still won't resolve.

is there anything I can do to resolve this, or is it a limitation on the Ally?