Greetings and salutations,
I have looked at the file you provided and have come up with a solution. First of all, you are right, and it is a DNS issue, and it is only a matter of tracking down which DNS component is causing the problems (my guess is that it is the hosts file). However, Java is a bit tricky for one reason, and that is that JVM has its own networking cache, which includes DNS. Lucky for you, flushing the cache is easy.
That is all i can say based on the info i was given, but please do feel free to contact me if you are interested.
Until then, best regards.