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Event ID: 408 Source: DNS

DNS Server could not open socket for address [IP address of server]. Verify that this is a valid IP address on this machine. If it is NOT valid use the Interfaces dialog under Server Properties in the DNS Manager to remove it from the list of IP interfaces. Then stop and restart the DNS server. (If this was the only IP interface on this machine and the DNS server may not have started as a result of this error. In that case remove the DNS\Parmeters\ListenAddress value in the services section of the registry and restart.) If this is a valid IP address for this machine, make sure that no other application (e.g. another DNS server) is running that would attempt to use the DNS port.
According to T735852, this is caused by a problem with the network interface and/or the IP address(es) settings. the article provides suggestions on how to troubleshoot this.
According to EV100596 (Hosts with virtual machines using the E1000/E1000E adapter), various network-related problems may be experienced by VMWare virtual hosts using the E1000 network card driver.

EV100597 (E1000/E1000e driver experience loss of network connectivity) also points to a known problem with E1000, still under investigation.
The DNS server is also a Winsock Proxy Client and the DNS server IP address has not been included in the Proxy Server's Local address table (LAT). You can verify this exclusion by looking at the Msplat.txt in the Proxy Client subdirectory (typically, c:\Mspclnt\Msplat.txt) on the DNS server. See ME200462 to solve this problem.

See WITP74603 for additional information about this event.
As per Microsoft: "These errors can occur on computers that have both of the following services installed on the same server: Network Address Translation (NAT) and DNS Server". See ME279678 to fix this problem.
According to Microsoft, this problem was corrected in Windows 2000 SP2. See ME260186 for more details.

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