Comment 2 for bug 336441

Note that --bind-interfaces is not the same as --interface. From the dnsmasq man page:

"On systems which support it, dnsmasq binds the wildcard address, even when it is listening on only some interfaces. It then discards requests that it shouldn’t reply to. This has the advantage of working even when interfaces come and go and change address. This option forces dnsmasq to really bind only the interfaces it is listening on. About the only time when this is useful is when running another nameserver (or another instance of dnsmasq) on the same machine. Setting this option also enables multiple instances of dnsmasq which provide DHCP service to run in the same machine."

It would also appear that --except-interface=lo is required to stop it interfering with other dnsmasq instances. The description has been updated to include this.

Attached is a patch that should fix this