Creating Child Domain

I have two computers with Server 2003 and one is the Domain controller and DNS the other I am trying to install as a Child Domain in an Exsisting Domain Tree. I have a linksys router and I have set both PCs to static IP addresses. When I get to the network creditials I get two errors: The error was: "This operation returned because the timeout period expired."
(error code 0x000005B4 ERROR_TIMEOUT) and the other is "The query was for the SRV record for _ldap._tcp.dc._msdcs.busybee

The DNS servers used by this computer for name resolution are not responding. This computer is configured to use DNS servers with the following IP addresses:

192.168.1.101

Verify that this computer is connected to the network, that these are the correct DNS server IP addresses, and that at least one of the DNS servers is running."
Both of the computers can ping each other by ip and host name. Is there a way to resolve this? Thank you