@ndipiazza:
I am also experiencing the issue. When I turn on the normal DNS Forwarding, the PFSense serves up the internet just fine.
When I install the package for dns-server, de-activate the DNS forwarding, then enable the DNS forwarding from the DNS-server…. it stops resolving addresses.
Anyone have a solution to that?
Did you take a look at http://forum.pfsense.org/index.php/topic,25897.0.html ?