IE Automatically detect settings not working due to WPAD alias DNS entry not responding

If you follow this article http://support.microsoft.com/kb/309814 to configure automatically detect settings in Internet explorer and have set up a WPAD alias on your DNS server, you may find the autodiscovery is not working. If you try to ping wpad or wpad.domainname.local you get a response Ping request could not find host wpad. Please check the.