Stumpr;
This is what I found from O'Reilly DNS and Bind fourth edition.
12.1.5. Using NIS and /etc/hosts
This last point doesn't compare nslookup to the resolver or name server but to ways of looking up names in general. As distributed from the Internet Software Consortium, nslookup uses only DNS; it won't use NIS or /etc/hosts. Most applications can use DNS, NIS, or /etc/hosts, depending on how the system is configured. Don't count on nslookup to help you find your lookup problem unless your host is really configured to use name servers.[93]
[93]Or your vendor's nslookup has been enhanced to query NIS servers and check /etc/hosts, like the one in HP-UX.
thanks
CA