ports can not find distfiles on CD or Hard disk ports tries to ftp files down

["Raymond Jacob" <jacob_raymond_(_at_)_hotmail_(_dot_)_com>]

I am sorry to bother the list but I just could not figure how to phrase the
question on googe to come up with anything meaningful.
I bought the official 3.4 OpenBSD CD-ROMs. I can install packages just fine.
However, I am constantly warned to use ports instead of packages. The
problem is that when I  do the following:
cd /usr/ports/www/php4
make

I get php4-core-4.3.3(not the real file name I just can not remembe the name 
right now)
not found on this system.

ftp://www.openbsd.org/ports/www/php4-core-4.3.3.tgz
dns time out.
ftp://www....com/ports/www/php4-core-4.3.3.tgz
...

Ports appears to keep trying to ftp the files to the hard drive instead 
using the files
in the /usr/ports/distfiles directory.

I have tried
make DISTDIR=/usr/ports/distfiles
and I still get the same error.

I tried editing
/etc/mk.conf
still the same error.

I appologize in advance for not finding the faq that addresses this.
Could some one tell what I am doing wrong?

thank you
K00LR_(_at_)_y

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