debian squeeze + dnsmasq (2.55-2)
# cat /etc/dnsmasq.conf:
interface=lo
interface=eth0
bind-interfaces
no-poll
bogus-priv
#####################
all-servers
strict-order
#####################
no-negcache
expand-hosts
domain=home-sweet-home
local=/home-sweet-home/
server=/home-sweet-home/192.168.1.254
server=/1.168.192.in-addr.arpa/192.168.1.254
dhcp-range=192.168.1.50,192.168.1.200,255.255.255.0,24h
dhcp-option=40,home-sweet-home
#cat /var/log/dnsmasq.log:
Nov 29 15:39:55 dnsmasq[1961]: using local addresses only for domain home-sweet-home
Nov 29 15:39:55 dnsmasq[1961]: read /etc/hosts - 7 addresses
Nov 29 15:39:55 dnsmasq[1961]: using nameserver 4.2.2.5#53
Nov 29 15:39:55 dnsmasq[1961]: using nameserver 109.86.2.21#53
Nov 29 15:39:55 dnsmasq[1961]: using nameserver 109.86.2.2#53
Nov 29 15:39:55 dnsmasq[1961]: using local addresses only for domain home-sweet-home
...
...
Nov 29 15:42:49 dnsmasq[1961]: query[A] someaddressfortest.com from 127.0.0.1
Nov 29 15:42:49 dnsmasq[1961]: forwarded someaddressfortest.com to 109.86.2.2
Nov 29 15:42:49 dnsmasq[1961]: query[A] someaddressfortest.com.home-sweet-home from 127.0.0.1
Nov 29 15:42:49 dnsmasq[1961]: config someaddressfortest.com.home-sweet-home is NXDOMAIN-IPv4