This is a really good idea of how to use DNS. It’s called DNStunnel. Check out their website for detailed information:
http://dnstunnel.de/
The idea is to tunnel eg. your http traffic through DNS. Which of course lets you bypass any ip based restriction:) You need some perl scripts and a server where you can run the ‚fake dns server‘.
There’s also a little video where you can see how easy this works:
http://dnstunnel.de/dns_tunneling_example.avi