Proxmox and DNS

Hi,

I have been playing around with proxmox for the past few weeks and I have a question that might have been asked before but I still don't find an answer for.
How does proxmox handle dns request for access to a virtual machine using RDP or VNC?
i.e. instead of entering the IP address of the VM into an RDP session using an DNS record such as myserver.domain.com
I have some experience with cloudstack (sorry I know comparing is BAD ;-) and it resolves to something like this 192-168-1-77.domain.com (192-168-1-77 being the local IP address of the VM) This is done automatically when a VM is created and requires no input from the VM creator. Obviously domain.com must be forwarded to your physical cloudstack server's IP address before it will resolve to the right local IP address.

At the moment I have a "external" DNS, but I have to manually enter an A record that points to the local IP address eg. 192-168-1-77.mydomain.com points to 192.168.1.77 on the local network.

Or have you found a better way of doing this?

Any help much appreciated