There are two types of nameservers (also called DNS servers):
Resolvers or caches get DNS requests from client machines and go out and track down the answers. This is the type of server whose IP you enter in the Windows Network Control Panel, /etc/resolv.conf, or in your NetGear router.
Authoritative servers publish information (like "www.domain.com is at 127.0.0.1") and answer requests from resolvers. These servers are only useful to you if you own your own domain.
To provide your server with basic Internet connectivity, you need to configure it with the IP addresses of one or more resolvers, which will typically be provided by your ISP.
If you are planning to host domains on your server, you will need to set up your own authoritative server(s) or get someone else to host your DNS information for you.