The NS Record in the delegation presumably references directory-0? I would be tempted to check for stale glue, but that only really applies if gateway-0 was ever used in the NS record.
Presumably a lookup of gateway-0 against the MS server returns 10.42.0.3? And is still non-authoritative?
Any chance you have another MS DNS server at the same patch level to see if it carries across servers?
Chris