Comment 1 for bug 289277

Is dnsmasq actually running? If not, you should read the is a question about ppp in the dnsmasq FAQ (http://www.thekelleys.org.uk/dnsmasq/docs/FAQ):

Q: Dnsmasq fails to start with an error like this: "dnsmasq: bind
   failed: Cannot assign requested address". What's the problem?

A: This has been seen when a system is bringing up a PPP interface at
   boot time: by the time dnsmasq start the interface has been
   created, but not brought up and assigned an address. The easiest
   solution is to use --interface flags to specify which interfaces
   dnsmasq should listen on. Since you are unlikely to want dnsmasq to
   listen on a PPP interface and offer DNS service to the world, the
   problem is solved.