Help with setting up active directory domain controller/DNS - need this for Clustering

Disclaimer: I am new to Active Directory, so please dont rule out the obvious things I may have overlooked.

I need to set up Active Directory Domain controller on at least one server so I can run clustering. I set up the domain controller and ran Cluster validation and that failed - unable to reach writable domain controller.

When I look at my server manager AD DS complain about DNS:
NASE-2012-234    4015    Error    Microsoft-Windows-DNS-Server-Service    DNS Server    1/14/2014 12:54:06 AM
The DNS server has encountered a critical error from the Active Directory. Check that the Active Directory is functioning properly. The extended error debug information (which may be empty) is "". The event data contains the error.

When I click on DNS this is the error:

The DNS server has encountered a critical error from the Active Directory. Check that the Active Directory is functioning properly. The extended error debug information (which may be empty) is "". The event data contains the error.
                    

Output of DCDiag -v is below.

PS C:\Users\Administrator> dcdiag -v

 

Directory Server Diagnosis

 

Performing initial setup:

   Trying to find home server...

   * Verifying that the local machine NASE-2012-234, is a Directory Server.

   Home Server = NASE-2012-234

   * Connecting to directory service on server NASE-2012-234.

   * Identified AD Forest.

   Collecting AD specific global data

   * Collecting site info.

   Calling ldap_search_init_page(hld,CN=Sites,CN=Configuration,DC=lab,DC=nase,DC=com,LDAP_SCOPE_SUBTREE,(objectCategory=

ntDSSiteSettings),.......

   The previous call succeeded

   Iterating through the sites

   Looking at base site object: CN=NTDS Site Settings,CN=Default-First-Site-Name,CN=Sites,CN=Configuration,DC=lab,DC=nas

e,DC=com

   Getting ISTG and options for the site

   * Identifying all servers.

   Calling ldap_search_init_page(hld,CN=Sites,CN=Configuration,DC=lab,DC=nase,DC=com,LDAP_SCOPE_SUBTREE,(objectClass=ntD

SDsa),.......

   The previous call succeeded....

   The previous call succeeded

   Iterating through the list of servers

   Getting information for the server CN=NTDS Settings,CN=NASE-2012-234,CN=Servers,CN=Default-First-Site-Name,CN=Sites,C

N=Configuration,DC=lab,DC=nase,DC=com

   objectGuid obtained

   InvocationID obtained

   dnsHostname obtained

   site info obtained

   All the info for the server collected

   * Identifying all NC cross-refs.

   * Found 1 DC(s). Testing 1 of them.

   Done gathering initial info.

 

Doing initial required tests

 

   Testing server: Default-First-Site-Name\NASE-2012-234

      Starting test: Connectivity

         * Active Directory LDAP Services Check

         The host c0c507c4-fb9b-49a6-9a01-ef79d7960c94._msdcs.lab.nase.com could not be resolved to an IP address.

         Check the DNS server, DHCP, server name, etc.

         Got error while checking LDAP and RPC connectivity. Please check your firewall settings.

         ......................... NASE-2012-234 failed test Connectivity

 

Doing primary tests

 

   Testing server: Default-First-Site-Name\NASE-2012-234

      Skipping all tests, because server NASE-2012-234 is not responding to directory service requests.

      Test omitted by user request: Advertising

      Test omitted by user request: CheckSecurityError

      Test omitted by user request: CutoffServers

      Test omitted by user request: FrsEvent

      Test omitted by user request: DFSREvent

      Test omitted by user request: SysVolCheck

      Test omitted by user request: KccEvent

      Test omitted by user request: KnowsOfRoleHolders

      Test omitted by user request: MachineAccount

      Test omitted by user request: NCSecDesc

      Test omitted by user request: NetLogons

      Test omitted by user request: ObjectsReplicated

      Test omitted by user request: OutboundSecureChannels

      Test omitted by user request: Replications

      Test omitted by user request: RidManager

      Test omitted by user request: Services

      Test omitted by user request: SystemLog

      Test omitted by user request: Topology

      Test omitted by user request: VerifyEnterpriseReferences

      Test omitted by user request: VerifyReferences

      Test omitted by user request: VerifyReplicas

 

      Test omitted by user request: DNS

      Test omitted by user request: DNS

 

   Running partition tests on : ForestDnsZones

      Starting test: CheckSDRefDom

         ......................... ForestDnsZones passed test CheckSDRefDom

      Starting test: CrossRefValidation

         ......................... ForestDnsZones passed test CrossRefValidation

 

   Running partition tests on : DomainDnsZones

      Starting test: CheckSDRefDom

         ......................... DomainDnsZones passed test CheckSDRefDom

      Starting test: CrossRefValidation

         ......................... DomainDnsZones passed test CrossRefValidation

 

   Running partition tests on : Schema

      Starting test: CheckSDRefDom

         ......................... Schema passed test CheckSDRefDom

      Starting test: CrossRefValidation

         ......................... Schema passed test CrossRefValidation

 

   Running partition tests on : Configuration

      Starting test: CheckSDRefDom

         ......................... Configuration passed test CheckSDRefDom

      Starting test: CrossRefValidation

         ......................... Configuration passed test CrossRefValidation

 

   Running partition tests on : lab

      Starting test: CheckSDRefDom

         ......................... lab passed test CheckSDRefDom

      Starting test: CrossRefValidation

         ......................... lab passed test CrossRefValidation

 

   Running enterprise tests on : lab.nase.com

      Test omitted by user request: DNS

      Test omitted by user request: DNS

      Starting test: LocatorCheck

         GC Name: \\NASE-2012-234.lab.nase.com

         Locator Flags: 0xe000f3fd

         PDC Name: \\NASE-2012-234.lab.nase.com

         Locator Flags: 0xe000f3fd

         Time Server Name: \\NASE-2012-234.lab.nase.com

         Locator Flags: 0xe000f3fd

         Preferred Time Server Name: \\NASE-2012-234.lab.nase.com

         Locator Flags: 0xe000f3fd

         KDC Name: \\NASE-2012-234.lab.nase.com

         Locator Flags: 0xe000f3fd

         ......................... lab.nase.com passed test LocatorCheck

      Starting test: Intersite

         Skipping site Default-First-Site-Name, this site is outside the scope provided by the command line arguments

         provided.

         ......................... lab.nase.com passed test Intersite

PS C:\Users\Administrator>