It looks like the 10.7.3 release from Apple has addressed a lot of the issues with joining .local domains and/or accessing .local file servers.
We've also added some enhancements to our 5.0.2 release to help speed up locating file servers with a .local extension. This update will be helpful for any version of 10.7, for example 10.7.1, 10.7.2, etc.
If you are struggling with your .local domain today, try updating to the latest and greatest 10.7.3 and DirectControl 5.0.2.
Our updated DirectControl Express version 5.0.2 also includes these fixes.