Does Windows Server 2008 Web Edition support the build-in Windows DNS Server Role?
Windows Server 2008 Web Edition is comparable to Windows Server 2003 Standard Edition. With Web Edition, Microsoft has removed much of the hardware and software limitations that plagued Web Edition 2003.
However, one core feature that was actually rendered unusable was the DNS Server role.
In order to use the Microsoft DNS Server service role, you must purchase Datacenter Edition.
Please see the Windows Server 2008 Hosting Overview for a comparison chart of versions and pricing.