DNS Resolver and Domain Overrides
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With a Domain Override you override the default DNS server with a specific one for a specific domain.
With Host Overrides you change the way you resolve domains locally.
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From what you say, it looks that what I would what is the Domain Override, but I had to change it. In the DNS Forwarder I had it working with the Domain Override. I'll try to find the problem so that I can get it back working with the Domain Override.
Thank You
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With the domain override, you're telling it "to lookup queries for *.thepiratebay.se, use DNS server at 199.27.135.8". Since 199.27.135.8 doesn't reply to DNS, that doesn't work.
When you add a host override for thepiratebay.se with 199.27.135.8, that tells the system "resolve thepiratebay.se as 199.27.135.8". That overrides it locally without needing any other server for resolution.
The first, as 199.27.135.8 is currently configured, would never have worked because it doesn't reply to DNS.