As per Microsoft: "The DNS proxy cannot find the list of name-resolution servers to which it should send Internet Connection Sharing (ICS) and Routing and Remote Access DNS queries". See MSW2KDB
for troubleshooting steps.
I managed to get rid of the error by creating new dialup connections, and deleting the old ones.
This event occurs when you enable "internet connection sharing" for a specific connection on Windows 2000. The computer sharing the connection runs a DNS proxy agent which relays DNS requests from the computers in its Local Area Network to a DNS server on the internet and returns the answer to them. For some reason, this agent dailed to to load. The first and most serious problem is that the computers in the LAN will not be able to resolve addresses using the server''s internal network address as their DNS server.Try disabling internet connection sharing, reboot to restart the network and then re-enable internet connection sharing.