Hello! I'm sorry about the delay. Another test: I did this: A. rm /etc/hosts
B. zefir sorin # cat /etc/dnsmasq.conf domain-needed bogus-priv no-resolv filterwin2k resolv-file=/etc/resolver strict-order address=/no.net/127.0.0.1 interface=eth1 interface=eth2 no-dhcp-interface=eth0 bind-interfaces dhcp-authoritative dhcp-range=lan1,192.168.1.10,192.168.1.14,255.255.255.248,2m dhcp-range=lan2,192.168.1.18,192.168.1.22,255.255.255.248,2m dhcp-option=lan1,3,192.168.1.9 dhcp-option=lan2,3,192.168.1.17 dhcp-option=42,0.0.0.0 dhcp-leasefile=/var/lib/misc/dnsmasq.leases log-queries dhcp-host=00:02:a5:68:07:fa,192.168.1.22 C. zefir sorin # ip addr show 1: lo: <LOOPBACK,UP> mtu 16436 qdisc noqueue link/loopback 00:00:00:00:00:00 brd 00:00:00:00:00:00 inet 127.0.0.1/8 brd 127.255.255.255 scope host lo inet6 ::1/128 scope host valid_lft forever preferred_lft forever 2: teql0: <NOARP> mtu 1500 qdisc noop qlen 100 link/void 3: tunl0: <NOARP> mtu 1480 qdisc noop link/ipip 0.0.0.0 brd 0.0.0.0 4: gre0: <NOARP> mtu 1476 qdisc noop link/gre 0.0.0.0 brd 0.0.0.0 5: sit0: <NOARP> mtu 1480 qdisc noop link/sit 0.0.0.0 brd 0.0.0.0 6: eth0: <BROADCAST,MULTICAST,UP> mtu 1500 qdisc pfifo_fast qlen 1000 link/ether 00:90:27:be:b8:a3 brd ff:ff:ff:ff:ff:ff inet 192.168.0.2/29 brd 192.168.0.255 scope global eth0 inet6 fe80::290:27ff:febe:b8a3/64 scope link valid_lft forever preferred_lft forever 7: eth1: <BROADCAST,MULTICAST,UP> mtu 1500 qdisc pfifo_fast qlen 1000 link/ether 00:90:27:89:81:c2 brd ff:ff:ff:ff:ff:ff inet 192.168.1.17/29 brd 192.168.1.255 scope global eth1 inet 192.168.1.9/29 brd 192.168.1.15 scope global eth1 inet6 fe80::290:27ff:fe89:81c2/64 scope link valid_lft forever preferred_lft forever 8: eth2: <NO-CARRIER,BROADCAST,MULTICAST,UP> mtu 1500 qdisc pfifo_fast qlen 1000 link/ether 00:08:c7:08:9d:6c brd ff:ff:ff:ff:ff:ff inet 192.168.1.25/29 brd 192.168.1.255 scope global eth2 inet6 fe80::208:c7ff:fe08:9d6c/64 scope link valid_lft forever preferred_lft forever D. zefir sorin # /etc/init.d/dnsmasq stop * Stopping service dnsmasq * Stopped service dnsmasq E. zefir sorin # rm /var/lib/misc/dnsmasq.leases F. zefir sorin # /etc/init.d/dnsmasq start * Starting service dnsmasq * Service dnsmasq started OK G. Nov 17 18:40:11 [dnsmasq] exiting on receipt of SIGTERM Nov 17 18:40:34 [dnsmasq] started, version 2.23 cachesize 150 Nov 17 18:40:34 [dnsmasq] compile time options: IPv6 GNU-getopt ISC-leasefile no-DBus Nov 17 18:40:34 [dnsmasq] DHCP, IP range 192.168.1.18 -- 192.168.1.22, lease time 2m Nov 17 18:40:34 [dnsmasq] DHCP, IP range 192.168.1.10 -- 192.168.1.14, lease time 2m Nov 17 18:40:34 [dnsmasq] failed to load names from /etc/hosts: No such file or directory H. Starting the client machine (on slax-5.0.5) Nov 17 18:42:53 [kernel] e100: eth1: e100_watchdog: link down Nov 17 18:42:55 [kernel] e100: eth1: e100_watchdog: link up, 100Mbps, full-duplex Nov 17 18:44:42 [dnsmasq] DHCPDISCOVER(eth1) 00:02:a5:68:07:fa Nov 17 18:44:42 [dnsmasq] DHCPOFFER(eth1) 192.168.1.14 00:02:a5:68:07:fa Nov 17 18:44:42 [dnsmasq] DHCPREQUEST(eth1) 192.168.1.14 00:02:a5:68:07:fa Nov 17 18:44:42 [dnsmasq] DHCPACK(eth1) 192.168.1.14 00:02:a5:68:07:fa Not good. It should be 192.168.1.22 . P.S. What does HTH mean? :) Cheers, Sorin.