Please follow the below steps to disable DNS Recursion on a Windows 2008 Server.
Login to your server via Remote desktop and go to the start menu. Choose Administrative tools > DNS Manager.
If you do not have DNS Manager on Administrative Tools, then you do not have DNS installed, so this issue will not effect you.
Right click your servers hostname and go to properties
Click the advanced tab
check the box at the top to disable DNS Recursion
This has sucessfully stopped your VPS from being attacked for DNS Recursion lookups.