First off I'm pretty sure I don't understand the syntax of /etc/dnsmasq.conf...

I've been using dnsmasq in a small office lan for almost two years now. We recently added OpenVPN for our few road warrirors. I wanted to keep the OpenVPN IP address range separate from the local folks. However that doesn't seem to be working, OpenVPN clients are assigned an address from the first defined range. Additionally the lease time is incorrect on OpenVPN clients ("Lease Obtained" and "Lease Expires" are the same).

Here's my dnsmasq.conf file.

no-poll                                  # do not poll resolv-file
except-interface=eth0                    # do not answer on external i/f
listen-address=10.169.1.1                # listen on local address only
listen-address=127.0.0.1                 #
domain-needed                            # don't forward plain names
bogus-priv                               # don't forward private addresse
filterwin2k # filter useless Windows DNS requests
#
# Local DNS name server
#
no-hosts                                 # do not read /etc/hosts
addn-hosts=/etc/hosts.dnsmasq            # instead, read this file
expand-hosts # add the domain to /etc/hosts entries
resolv-file=/etc/resolv.dnsmasq          #
domain=internal.lan                      # domain name
local=/internal.lan/ # answer these domains from /etc/hosts
#
# Automatically configure DHCP client network i/f (RFC 1533)
#
dhcp-option=1,255.255.255.0              # subnet mask
dhcp-option=42,10.169.1.1                # NTP server
dhcp-mac=ovpn,00:FF:*:*:*:*

dhcp-option=ovpn,3 # Don't send default GW to openvpn
                                         # clients
#
# DHCP address range
#
dhcp-range=10.169.1.17,10.169.1.63,255.255.255.0,12h # DHCP addr range for LAN clients dhcp-range=ovpn,10.169.1.120,10.169.1.125,255.255.255.0,6h # DHCP addr range for OpenVPN clients


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