Remova a entrada para nameserver 127.0.0.1
e ela deve pelo menos começar a funcionar.
Em seguida corrija seu resolvedor local
$ dig @8.8.8.8 www.google.com
; <<>> DiG 9.7.3 <<>> @8.8.8.8 www.google.com
; (1 server found)
;; global options: +cmd
;; Got answer:
;; ->>HEADER<<- opcode: QUERY, status: NOERROR, id: 47139
;; flags: qr rd ra; QUERY: 1, ANSWER: 6, AUTHORITY: 0, ADDITIONAL: 0
;; QUESTION SECTION:
;www.google.com. IN A
;; ANSWER SECTION:
www.google.com. 43199 IN CNAME www.l.google.com.
www.l.google.com. 299 IN A 74.125.227.146
www.l.google.com. 299 IN A 74.125.227.145
www.l.google.com. 299 IN A 74.125.227.144
www.l.google.com. 299 IN A 74.125.227.148
www.l.google.com. 299 IN A 74.125.227.147
;; Query time: 73 msec
;; SERVER: 8.8.8.8#53(8.8.8.8)
;; WHEN: Wed Aug 1 04:14:14 2012
;; MSG SIZE rcvd: 132
$
$ dig @8.8.4.4 www.google.com
; <<>> DiG 9.7.3 <<>> @8.8.4.4 www.google.com
; (1 server found)
;; global options: +cmd
;; Got answer:
;; ->>HEADER<<- opcode: QUERY, status: NOERROR, id: 46533
;; flags: qr rd ra; QUERY: 1, ANSWER: 6, AUTHORITY: 0, ADDITIONAL: 0
;; QUESTION SECTION:
;www.google.com. IN A
;; ANSWER SECTION:
www.google.com. 43152 IN CNAME www.l.google.com.
www.l.google.com. 252 IN A 74.125.227.146
www.l.google.com. 252 IN A 74.125.227.145
www.l.google.com. 252 IN A 74.125.227.144
www.l.google.com. 252 IN A 74.125.227.148
www.l.google.com. 252 IN A 74.125.227.147
;; Query time: 32 msec
;; SERVER: 8.8.4.4#53(8.8.4.4)
;; WHEN: Wed Aug 1 04:15:02 2012
;; MSG SIZE rcvd: 132
$