It's interesting that there's no discussion of the log issue on dnsmasq-discuss mailing list.Thanks for the pointer....exactly what I am seeing as well....
May be time to wait for the first point release.
Code:Jan 20 13:46:18 dnsmasq[16246]: failed to send packet: Network is unreachable Jan 20 13:46:18 dnsmasq[16246]: failed to send packet: Address family not supported by protocol