Okay, so I'm answering my own post.... anyway, here's what I found out.
This problem only occurs when the "Stealth Mode" is turned on for the Firewall. Once turned it off, I was able to resolve all local addresses instantaneously.
Not sure if you have this turned on or not; but you do the following to find out:
Go to System Preferences -> Sharing -> Firewall -> Advanced -> uncheck "Stealth Mode"
Now open Safari and type in "http://machinedname.local" or if you want to go to a specific port "http://machinename.local

ortnumber/"
This should resolve this situation; but this is still a big in Safari as I did not need to do this for resolving local addresses in Firefox and Camino.
Cheers.