That means there's something between NxFilter and your clients. Could be a firewall issue. Those 2 domains are for internal use. On NxFilter machine,
cd c:/nxfilter/bin
shutdown.bat
startup.bat
Then you see NxFilter running. If you enable debugging that'd be better.
You will see how NxFilter deals with each DNS request. If the timeout is from your Windows firewall, you could try to disable your Windows firewall temporarily. We add some firewall rules when you install it, but on some systems, it doesn't work.
Anyway, you need to find out if your NxFilter gets anything from your nslookup queries. You could try it on another PC and you could try it on the same machine you installed NxFilter.