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Do you have cpanel installed as well or just installed cpanel dns?
Just cpanel dns
Well the general concept here is:
Also read: http://www.docs.cpanel.net/twiki/bin/view/AllDocumentation/WHMDocs/ConfigureCluster
You need cpanel to run DNSonly. DNS only is a free product but can only be used with cpanel. The purpose of DNSonly is to host dns on another stand alone server without any license but it can only be accessed / used by cpanel. This is my understanding on this. Someone correct me if i am wrong
Exactly; cPanel DNS only is a product that can only be used in addition to a normal cPanel server, and is usually installed in a different location for failover.
It can also be used as a failover MX by using NDCHost's SMX Plugin: http://www.ndchost.com/cpanel-whm/plugins/smx/