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Are you using ISA?Are you using that server for DHCP/as a DNS server for other machines?PLEASE treat that server to a memory upgrade!
Also what do you get when you try to ping sites from the internet such as yahoo.com or google.com?
By coincidence I think 20 seconds is the initial default timeout on most Windows clients' DNS queries. Will give this some more thought, but just wanted to toss that one in there for now.
So let me just check I've got this right. Your domain controller has a single network card on your LAN (it is not operating as a router). Its DNS server points only at itself for all DNS queries. In that case, how can it resolve queries concerning external domains?