Configuration for a Host Only VM Workstation

I am trying to set up a virtual, virtual infrastructure. I would like to test, VMWare 5.1 on my VMWare workstation. For High Availability (HA) to work I need a full DNS (forward and reverse look up). My Host only network is 172.16.X.X, but I have segregated it into several Class C subnets. I need only two have 2 servers Host1 (172.16.2.10) and Host2 (172.16.2.20) to be seen on the 172.16.2.X subnet.

My server.conf file:
server:

verbosity level 0-4 of logging

verbosity: 0
interface: 172.16.2.254 #VMNet1
outgoing-interface: 172.16.2.254
access-control: 172.16.0.0/16 allow
local-zone: “vmtest” static
local-data: “host1.vmtest IN A 172.16.2.10”
local-data: “host2.vmtest IN A 172.16.2.20”
local-data: “vcenter.vmtest IN A 172.16.2.1”

Does not seem to work

T. James