What I've found is that with Advanced DNS Services enabled name resolution doesn't work. With Advanced DNS Services disabled and leaving host name, local domain name blank (defaults), computers and devices prior to Vista, name trace works. If I enter anything in host name and/or local domain name it no longer works at all. Even if the host name is the same as what's configured automatically.
I tried reverting the router to factory defaults, using only factory settings, let PC's get new IP's and still doesn't work. I've change which PC is the master browser and nothing changed. So, I see no solution for this problem.