Hey,
I don't know anything about nscd, but I once had a .local domain and when we started using SuSE 9.1 we had problems with name resolution.
I found something in the release notes about SuSE using mDNS (multicast DNS) for name resolution for .local domain names.
The fix at the time was to modify the resolver library like this:
perl -pi -e 's/local/lozal/g' /lib/libresolv.so.2
This replaces all instances of "local" with "lozal".
A quick search turns up this page:
http://www.novell.com/documentation/sled10/readme/release_notes_sp1.html4.8 Joining a Local Active Directory Domain During Installation
If you want to join a â .localâ Active Directory domain during the SLED 10 SP1 installation, disable the mdns handling by adding mdns off to the /etc/host.conf file.
I don't know if it has been changed in recent versions because we have changed our internal domain name. The easiest way to find out if this is your problem is to run a tcpdump while doing a dns lookup. If it uses port 53 then it is normal DNS. If it is using port 5353 then it is using mDNS.