Thanks. Hmm. I was afraid you'd say that. I will indeed try what you recommend, however I'm 99% certain the setup is not going out to the internet to pull the local intranet feeds. That's because the syndication targets are all on the exact same WPMU installation. It's a single box running the database AND the web server (crazy, yes) off of a single, NAT IP address (10.*.*.123).
In other words:
abc.blogs.company.com syndicates content from bcd.blogs.company.com
A request from abc crosses the localhost loopback to pull feed content from bcd.blogs.company.com/feed.
OR
request from abc leaves the 10.*.*.123 machine, looks up the DNS entry for bcd.blogs.company.com and resolves it back to the same IP address (10.*.*.123), then pulling feed content back from bcd.blogs.company.com/feed.
Either way, shouldn't it just loop back?
I'll still try adding the IP directly to the hosts file of the server. Just seems odd.
Thanks again.