Linux – Bind 9.7.3 not forwarding to ISP DNS server (only local resolving successful)

I have a bind DNS where I have installed SAMBA and made it a BDC. I plan to promote it to PDC and take out the Win2003 AD server to replace it with Samba.

Bind is installed on that same server as Samba and internal resolving work fine. However forwarding to the external DNS server for some reason does now work.

dig @8.8.8.8 google.com yields the correct output so I expect no connection issues.

The OS is Ubuntu (2.6.32) and Bind 9.7.3

What I have tried so far,

1) Adding to named.conf.options

recursion yes;
    allow-recursion { localhost; };

2) Adding to named.conf.options

recursion yes;
    allow-recursion { localhost; 10.10.14.241; };

3) Adding to named.conf.local

zone "." {
        type hint;
        file "/etc/bind/root_servers.hosts";
        };

4) Adding to named.conf.options

forwarders {
            8.8.8.8
            };

5) Adding to named.conf.local where the zone info is saved

zone "DOMAIN.COM" {
        type master;
        file "/var/lib/bind/DOMAIN.COM.hosts";
        check-names ignore;
        forwarders {
        8.8.8.8;
        };
        };

None have worked so far,

Please advice.

Thanks.