[Dnsmasq-discuss] Can not get Dnsmasq to work

[Joel Freiberg]

I am trying to set up a redwall 0.5.5 firewall and use dnsmasq for
DNS/DHCP. Off of the Redwall box I have a Redhat 9 virtual machine
(Virtual PC 2004) running on a XP box.  We have 5 IPs from SBC and I'd
like to use one for a pure Linux network.
Let me explain briefly my network setup, let me know if you need more info. 
I have two nics in the Redwall box, eth0 to SBC, eth1 for my
internal-LAN.  I use Shorewall to route/firewall traffic.  I ran a
cable from Redwall eth1 into a hub and connect from the hub to the
second nic on my XP box (eth1 in XPs eyes) for my RH9 VM.  In the
Virtual PC settings I set the second nic (a DLink DFE-530TX+) to be
"adapter 1" or the nic to be used by RH9.  It works just fine if I
connect it to my other network (off a Netgear router/firewall), I can
get internet with no problems and pick up a different IP then eth0 on
my XP box so I know the NIC is fine.
However, I want RH9 to pick up DHCP from my Dnsmasq on my Redwall box,
and so far I can not get it to do so.
Hopefully the above isn't too confusing, I just wanted to give you an
idea of what I'm trying to do.  Here are my configs in Redwall then
RH9:

Redwall:
/etc/sysconfig/network-scripts/ifcfg-eth0
  DEVICE=eth0
  BOOTPROTO=none
  ONBOOT=yes
  IPADDR="ip from SBC in a.b.c.d format"
  NETMASK=255.255.255.248
  BROADCAST="broadcast from SBC in a.b.c.d format"
  USERCTL=no

/etc/sysconfig/network-scripts/ifcfg-eth1
  DEVICE=eth1
  BOOTPROTO=static
  BROADCAST=192.168.0.255
  IPADDR=192.168.0.255
  NETMASK=255.255.255.0
  NETWORK=192.168.0.0
  ONBOOT=yes
  USERCTL=no

/etc/dnsmasq/dnsmasq.conf
  domain-needed
  bogus-priv
  filt erwin2k
  interface=lo
  interface=eth1
  expand-hosts
  domain=dmlinux.local
  dhcp-range=192.168.0.10,192.168.0.250,120h
  
/etc/hosts
  127.0.0.1  localhost localhost.localdomain
  192.168.0.100  workstation1

/etc/resolv.conf
  nameserver "dns ip given by sbc in a.b.c.d format"
  nameserver "dns ip given by sbc in a.b.c.d format" 

/etc/sysconfig/network
  NETWORKING=yes
  HOSTNAME=dmlinux.local

RH9:
/etc/sysconfig/network-scripts/ifcfg-eth0
  DEVICE=eth0
  BOOTPROTO=DHCP
  ONBOOT=yes

/etc/hosts
  127.0.0.1 localhost.localdomain localhost workstation1

/etc/resolv.conf
  nameserver 192.168.0.254
  search  dmlinux.local

/etc/sysconfig/network
  NETWORKING=yes
  HOSTNAME=workstation1