It doesn't really suggest a problem with DNS, if Ping gives you the line like this:
Pinging www-real.wa1.b.yahoo.com [69.147.76.15] with 32 bytes of data:
Then DNS is done, even if the request times out after that.
That means you need to look into network paths, possible firewalls, etc etc. Are you able to monitor network traffic on your firewall?
Chris