Don't use 127.0.0.1 in resolv.conf!

Here's what the Name Server Operations Guide for BIND has to say about it:

Note that if you wish to list the local host in your resolver configuration file, you should probably use its primary Internet address rather than a local-host alias such as 127.0.0.1 or 0.0.0.0. This is due to a bug in the handling of connected SOCK_DGRAM sockets in some versions of the BSD networking code. If you must use an address-alias, you should prefer 0.0.0.0 (or simply ``0'') over 127.0.0.1, though be warned that depending on the vintage of your BSD-derived networking code, both of them are capable of failing in their own ways.