Problem resolving subdomains

[Phusion]

I am having a problem with DHCP-enabled clients on my test network.
The servers are running on the test.com domain while the DHCP-enabled
clients are on the mdnlan.test.com domain. The DHCP computers get
domain names of computername.mdnlan.test.com. The DNS server is named
smdndnsp1.test.com. This server also runs the DHCP service. These
computers are having problems pinging the computers on the test.com
domain. The version for BIND is 9.3.2-P1.

- ping from testcomp.mdnlan.test.com to dns.test.com works
- ping from testcomp.mdnlan.test.com to dns fails

Here is a copy of named.conf.

/* TSIG keys ======================= */
key mdnlan {
        algorithm       HMAC-MD5.SIG-ALG.REG.INT;
        secret
"yfmizFMbQwJGDEAscbDv9+bnnxHUkzKoNbDvBm8pUEiwBZBkjEFni5RDvE9l5eRh5iVa9DzZaEo/iqLSErL6Pg==";
};

/* ACLs ============================ */
acl internal {
        127/8; 10.1.1.0/24; 10.1.101.0/24;
};

/* rndc configuration ============== */
key rndc-key {
        algorithm       hmac-md5;
        secret
"Bpd0MiJARZI7+Ze5ZvYqpMLWKd6u43DRsqRB6ouHEay8dQZRCdj5zsibvdR6gySRjen7AGAV/DYedEDFsjhEvg==";
};

controls {
        inet            127.0.0.1 port 953
                        allow { 127.0.0.1; }
                        keys { rndc-key; };
};

/* Options ========================= */
options {
        directory       "/";
        version         "";     // remove this to allow version queries
        listen-on    { any; };

        allow-recursion { internal; };
};

/* Logging ========================= */
logging {
        channel default_syslog {
                syslog local6;
                severity info;
        };
        category default { default_syslog; };
};

/* Authoritative zones ============= */
zone "." {
        type            hint;
        file            "standard/root.hint";
};

zone "0.0.127.in-addr.arpa" {
        type            master;
        file            "standard/loopback";
        allow-transfer  { localhost; };
};

zone "1.1.10.in-addr.arpa" {
        type            master;
        file            "master/db.10.1.1";
        allow-transfer  { none; };
        allow-update    { key mdnlan; };
        notify          yes;
};

zone "localhost" {
        type            master;
        file            "standard/localhost";
        allow-transfer  { localhost; };
};

zone "com" {
        type            delegation-only;
};

zone "net" {
        type            delegation-only;
};

zone "mdnlan.test.com" {
        type            master;
        file            "master/db.mdnlan.test.com";
        allow-transfer  { none; };
        allow-update    { key mdnlan; };
        notify          yes;
};

zone "test.com" {
        type            master;
        file            "master/db.test.com";
        allow-transfer  { localhost; };
};

I'm not sure what the problem is. Let me know. Thanks.