teor:
So we recommend SOCKSPort or HTTPTunnelPort instead, because they support sending DNS names to exits as part of the connection request.
Looks like this can also be achieved for TransPort by configuring:
AutomapHostsOnResolve 1 AutomapHostsSuffixes .
Then tor will tor (instantly) hand out an IP address in the VirtualAddrNetworkIPv{4,6} range for _all_ domains, not just .onion etc. With these options, if I watch STREAM events on the control port I see SENTCONNECT to the hostname.
Rusty