Windows nslookup DNS timeouts?

In Windows 7 by default the nslookup command does a lookup using both A (IPv4) and AAAA (IPv6) query records.
Together that is -type=A+AAAA

Looking at them separately ...

> nslookup -type=A fiddle.nonline.lan 10.16.1.41
Server: meserver.lan
Address: 10.16.1.41

Name: fiddle.nonline.lan
Address: 10.16.1.42

> nslookup -type=AAAA fiddle.nonline.lan 10.16.1.41
Server: meserver.lan
Address: 10.16.1.41

DNS request timed out.
timeout was 2 seconds.
DNS request timed out.
timeout was 2 seconds.
*** Request to meserver.lan timed-out

So that is where your spurious "DNS timed out error" is coming from!