Originally posted here by thehorse13
No. This is not correct. This is your gateway address, not your DNS server. Go to your ISPs website and get the IP of the primary and secondary DNS servers and put them in resolv.conf as advised.

The syntax varies distro to distro but if you have Xwindows, simply go into YAST and pop the IPs in there. This edits the resolv.conf for you via the GUI.
That's not necessarily accurate TH. Many SOHO routers will act as caching DNS servers (such as wireless home D-Link and Linksys models).

I do find it interesting that you can ping google using the name, and surf to it using the IP your ping resolved, but are unable to surf using the name. Clearly if it is as you stated name resolution is functioning properly, but not web surfing. Can you try telnetting to google? If you do it by name and it opens a connection, there is clearly some kind of web browser configuration issue that is being shared by the update utility.