Hello Jay,
Thanks for your post and Merv's input.
I agree that please first install the hotfix 961775 as Merv pointed out. In addition, KB884114 explains the meaning of Event 404 and 408 for your information:
DNS event messages 1 through 1614 in Windows Server 2003
http://support.microsoft.com/kb/884114
If the issue still occurs, let's temporarily disable all 3rd party anti-virus and firewall software on the SBS server for test purpose. Then test the issue again.
Hope this helps. Also, if you have any questions or concerns, please do not hesitate to let me know.
Best regards,
Robbin Meng(MSFT)
Microsoft Online Newsgroup Support
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