Working on installing a new SBS 2011 server into a workgroup setting and when we went to install a couple of Windows 7 Pro machines the http://connect would not work it would error out on the contacting the domain part. DNS lookups and everything would resolve properly. What we finally did to get the machines to connect after a lot of head scratching was to add the domain suffix to the properties of the NIC and then it would work. Strange more on that as I look into this but for now this is our quick work around.
Til later just Roger