DNS Server resolves external address,when vpn dns should resolve internal address

When your VPN is disconnected, your client's resolver uses your home DNS server to resolve names. When you try to access the hostname router, it uses the search path and asks your server for the address of router.dailey.home.com, and all is well.

When your VPN is connected, your VPN client and network settings point your client's resolver to your work DNS server. When you try to access the hostname router, your computer asks your work DNS server for the address of router.dailey.home.com. Since, as you've noted, the authoritative servers for the home.com domain return a valid answer for that domain name, the resolver stops there. If, instead, you changed your domain name to something not resolvable by Internet DNS servers, such as home.local, your work DNS server would still have no way of resolving router.home.local to an IP address, and would likely return an authoritative NXDOMAIN answer, i.e. "this domain does not exist." This configuration would fix your inability to reach intranet hosts without fully qualified names, since your client would proceed to the next element of your search path, but you still wouldn't be able to reach your home machines.

The best solution I can think of is to set up your client to prefer your Local Area Connection 2 (Control Panel > Network and Internet (View network status and tasks)> Change adapter settings; press Alt and choose Advanced Settings; and then modify the adapter order), and then to configure your DNS server to delegate responsibility for the pacs.local domain to your work DNS server. This arrangement still has the problem that you won't be able to get to any Internet-facing machines in pacs.local when your VPN is not connected, but given that the TLD is .local, I expect that won't be a problem. You may possibly still run afoul of requirements from your VPN client.

I can't create the zone superwebsite.mycorp.com inside the intranet: this would cause the AD DNS server to consider itself authoritative and ignore the real authoritative server outside of the intranet.

You can, and that's the only way you're going to get what you want. I've had similar setups in the past, and as dirty as doing this will make you feel, I've never had issues doing it.

The key is to create a zone whose name matches the FQDN, superwebsite.mycorp.com, not for mycorp.com as a whole. Then create a new A record in the zone with the relevant IP.

The only time this will present a problem is:

• When the IP changes, you must remember to update it internally.
• If you ever use 4th level names, i.e. something.superwebsite.mycorp.com, you also need to maintain these both in the Internet DNS and the internal DNS.