Quite an old technet article talks about this http://technet.microsoft.com/en-us/library/cc708159(WS.10).aspx - in particular this paragraph is interesting. The link takes you to a document that shows how to reconfigure the Mac to work.
If you have Macintosh client computers that are running the Macintosh OS X version 10.3 operating system or later, and you are using the .local label for the full DNS name of your internal domain, then those client computers cannot discover other computers that are members of the network and that use the .local label. Macintosh OS X version 10.3 uses the .local label for its Rendezvous service. To work around this, it is recommended that you do not use the .local label for the full DNS name of your internal domain. If you must use the .local label, then you must also configure settings on the Macintosh computers so they can discover other computers on the network. For more information about how to configure client computers running Macintosh OS X version 10.3 or later, see Connecting Macintosh Computers to a Windows Small Business Server 2003 Network on the Microsoft Web site at http://go.microsoft.com/fwlink/?LinkID=39689.
If you have Macintosh client computers that are running the Macintosh OS X version 10.3 operating system or later, and you are using the .local label for the full DNS name of your internal domain, then those client computers cannot discover other computers that are members of the network and that use the .local label. Macintosh OS X version 10.3 uses the .local label for its Rendezvous service. To work around this, it is recommended that you do not use the .local label for the full DNS name of your internal domain. If you must use the .local label, then you must also configure settings on the Macintosh computers so they can discover other computers on the network. For more information about how to configure client computers running Macintosh OS X version 10.3 or later, see Connecting Macintosh Computers to a Windows Small Business Server 2003 Network on the Microsoft Web site at http://go.microsoft.com/fwlink/?LinkID=39689.