> There seem be three options roughly:
> 
> 1)  Use .foo TLD which isn't used on the Internet ( dangerous ).
> 
> 2)  Use globally registered domain name ( wasteful ).
> 
> 3)  Use a subdomain of a globally registered domain name ( limiting ).


No, there's a fourth option.  Use "split horizon" DNS:
  http://en.wikipedia.org/wiki/Split-horizon_DNS

This is how I do it and it is reasonable, particularly considering you
shouldn't mix your internal name servers and your external ones (for
multiple security reasons).

So basically, you buy a domain, but don't "waste" it on just internal
use.  You provide one set of records internally on that domain, but
provide a different/sub-set of that externally with a different DNS
service (could be on same box, but with different configs).  There are
limitations to this approach in scenarios where you want split-tunnel
VPNs, but it seems most people don't want that right now.

If you would like some tips on how to do this with djbdns, ping me off
list.  I don't recommend using BIND for this.  Considering what I've
learned about the mentality of BIND developers from my discussions
with them in the past, I don't wish the pain of using it on anyone.

HTH,
tim
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