IIS 7 serves test html page locally but not from another machine on LAN

This started with hosting a WCF service on a server with IIS7. A simple client console app, running on the IIS7 server, can call the service and get a response. 

I ran the same client console app on a laptop on the LAN, the request times out. 

I added a "test.html" page to the site on the IIS7 box. Same result, from the server the page loads; from the laptop, timeout. 

I enabled Failed Request Tracing on the IIS7 and as I suspected nothing is ever logged. I enabled Anonymous and Basic Authentication on IIS7. Same result. 

I can see the IIS7 box from the laptop. 

I then ran Fiddler on the laptop. A 502 status code for the call to the html page is returned: 

Request Count: 	1
Bytes Sent: 	582
Bytes Received: 623

ACTUAL PERFORMANCE
--------------
ClientConnected:	12:01:46.255
ClientBeginRequest:	12:01:46.255
ClientDoneRequest:	12:01:46.255
Gateway Determination:	0ms
DNS Lookup: 		2252ms
TCP/IP Connect:		0ms
ServerConnected:	00:00:00.000
FiddlerBeginRequest:	00:00:00.000
ServerGotRequest:	00:00:00.000
ServerBeginResponse:	00:00:00.000
ServerDoneResponse:	00:00:00.000
ClientBeginResponse:	12:01:48.511
ClientDoneResponse:	12:01:48.511

	Overall Elapsed:	00:00:02.2562256

RESPONSE CODES
--------------
HTTP/502: 	1

RESPONSE BYTES (by Content-Type)
--------------
 ~headers:	111
text/html:	512


Under TextView in Fiddler I see:

"Fiddler: DNS Lookup for http failed. No such host is known"    

What am I missing here? I am new to IIS7, but feel pretty comfortable I have it set up correctly. 

Thanks