I have a Windows 2008 server with two IP addresses assigned to a single NIC. The DNS settings are setup to register the connections's addresses on the DNS server. nslookup shows both IP addresses for the server name. How is name resolution done in this case, i.e. which IP address does the DNS server return for a host lookup? Or does it return both, and the client selects one of the addresses?
Normally DNS server will rotate through all available addresses for a given hostname. You've got two in this case, it'll alternate which it hands out each time.
The DNS server can be configured differently, but this is generally not a good idea. If you can elaborate on why this configuration doesn't work for you, we might be able to propose a solution.