[squid-users] Help going to hostname sans domain

I'm trying to go a hostname without a domain through my Squid proxy. i.e.

http://test instead of http://test.mydomain.com

In my Windows, I have mydomain.com as a the "search" domain, although
using my Squid proxy this shouldn't affect anything:

C:\Documents and Settings\pcampbell>ping test
Pinging test.mydomain.com [10.1.69.90] with 32 bytes of data:

In /etc/squid/squid.conf I have:
dns_nameservers 10.100.1.98

If I do an nslookup for test, I get:
Server: 10.100.1.98
Address: 10.100.1.98#53

Non-authoritative answer:
Name: test.mydomain.com
Address: 10.1.69.90

However finally, when I go to enter it in Mozilla,I get:

While trying to retrieve the URL: http://test/

The following error was encountered:

     Unable to determine IP address from host name for test

The dnsserver returned:

     Name Error: The domain name does not exist.

This must be something really obvious that I am overlooking. Thanks in
advance!

-- 
Patrick Campbell