Cosmin,
How is your network setup? Do you have two NIC's in the SME and have it in Gateway/Server mode? If so, it should work. The SME Server should forward requests that it doesn't know about the the external NIC and out to your ISP's DNS.
Where are your workstations getting their IP address from? Are you using the DHCP that is supplied with the SME Server? You can add the second DNS server to the COnfiguration of your workstation manually, or add it as part of the DHCP setup.
Darin