That is something some of the users have been reporting. Can you do me two favors? What firmware version are you using ? and what does the entries of /etc/dnsmasq.conf look like before you added the router ip to lan dns 1. ? ( take the lan dhcp 1 option away for a minute and report the non-private entries in your /etc/dnsmasq.conf file..)
Of course, assuming you mean this:
Firmware Version:
386.4
BEFORE removal of DHCP - DNS option:
<--START-->
# cat /etc/dnsmasq.conf
pid-file=/var/run/dnsmasq.pid
user=nobody
bind-dynamic
interface=br0
interface=pptp*
no-dhcp-interface=pptp*
no-resolv
servers-file=/tmp/resolv.dnsmasq
no-poll
no-negcache
cache-size=1500
min-port=4096
bogus-priv
domain-needed
dhcp-range=lan,192.168.51.2,192.168.51.254,255.255.255.0,86400s
dhcp-option=lan,3,192.168.51.1
dhcp-option=lan,6,192.168.51.1,0.0.0.0
dhcp-option=lan,252,"\n"
dhcp-authoritative
interface=br1
dhcp-range=br1,192.168.101.2,192.168.101.254,255.255.255.0,86400s
dhcp-option=br1,3,192.168.101.1
interface=br2
dhcp-range=br2,192.168.102.2,192.168.102.254,255.255.255.0,86400s
dhcp-option=br2,3,192.168.102.1
address=/use-application-dns.net/
address=/_dns.resolver.arpa/
dhcp-name-match=set:wpad-ignore,wpad
dhcp-ignore-names=tag:wpad-ignore
dhcp-script=/sbin/dhcpc_lease
script-arp
edns-packet-max=1280
addn-hosts=/jffs/addons/YazDHCP.d/.hostnames # YazDHCP_hostnames
dhcp-hostsfile=/jffs/addons/YazDHCP.d/.staticlist # YazDHCP_staticlist
dhcp-optsfile=/jffs/addons/YazDHCP.d/.optionslist # YazDHCP_optionslist
### Start of script-generated configuration for interface wl0.2 ###
interface=wl0.2
dhcp-range=wl0.2,192.168.3.2,192.168.3.254,255.255.255.0,86400s
dhcp-option=wl0.2,3,192.168.3.1
dhcp-option=wl0.2,6,192.168.50.129,192.168.50.147
dhcp-option=wl0.2,44,192.168.51.1
### End of script-generated configuration for interface wl0.2 ###
port=553
local=/192.in-addr.arpa/
local=/10.in-addr.arpa/
<--END-->
AFTER removal of DHCP - DNS options:
<--START-->
# cat /etc/dnsmasq.conf
pid-file=/var/run/dnsmasq.pid
user=nobody
bind-dynamic
interface=br0
interface=pptp*
no-dhcp-interface=pptp*
no-resolv
servers-file=/tmp/resolv.dnsmasq
no-poll
no-negcache
cache-size=1500
min-port=4096
bogus-priv
domain-needed
dhcp-range=lan,192.168.51.2,192.168.51.254,255.255.255.0,86400s
dhcp-option=lan,3,192.168.51.1
dhcp-option=lan,252,"\n"
dhcp-authoritative
interface=br1
dhcp-range=br1,192.168.101.2,192.168.101.254,255.255.255.0,86400s
dhcp-option=br1,3,192.168.101.1
interface=br2
dhcp-range=br2,192.168.102.2,192.168.102.254,255.255.255.0,86400s
dhcp-option=br2,3,192.168.102.1
address=/use-application-dns.net/
address=/_dns.resolver.arpa/
dhcp-name-match=set:wpad-ignore,wpad
dhcp-ignore-names=tag:wpad-ignore
dhcp-script=/sbin/dhcpc_lease
script-arp
edns-packet-max=1280
addn-hosts=/jffs/addons/YazDHCP.d/.hostnames # YazDHCP_hostnames
dhcp-hostsfile=/jffs/addons/YazDHCP.d/.staticlist # YazDHCP_staticlist
dhcp-optsfile=/jffs/addons/YazDHCP.d/.optionslist # YazDHCP_optionslist
### Start of script-generated configuration for interface wl0.2 ###
interface=wl0.2
dhcp-range=wl0.2,192.168.3.2,192.168.3.254,255.255.255.0,86400s
dhcp-option=wl0.2,3,192.168.3.1
dhcp-option=wl0.2,6,192.168.50.129,192.168.50.147
dhcp-option=wl0.2,44,192.168.51.1
### End of script-generated configuration for interface wl0.2 ###
port=553
local=/192.in-addr.arpa/
local=/10.in-addr.arpa/
<--END-->