If you are using DNS Forwarder and getting DNS issues, it means the DNS Forwarder is making a request and not getting back a response. You could try turning off DNS forwarder which will force all your computers to contact the DNS server directly to see if that resolves the issue.
If you continue to have issues with DNS forwarder turned off, it means there is either a problem with the DNS servers you are using or something is interrupting the connection to those DNS servers when it happens.
See if you can ping those DNS servers first. If you can, next time this happens, run a quick command prompt to ping the DNS servers to see if they respond to a ping. If they don't, it means something is either interrupting your connection somewhere between you and them; or the people running the DNS server are having issues of their own.
A few steps at a time and you should be able to track down the source of the problem.
Also, if you machine is up to spec, I would recommend up grading to the 1.3 release of m0n0wall as it's a painless process to do it without your configuration getting all messed up. Just be sure to follow the upgrade steps exactly