[64 bit] Need dns cache-dnsmasq

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http://ubuntuforums.org – Making server for school. ISP is PPPoe. internet-modem/router-server-WAN(eth0)-LAN(eth2)-switch-clients. eth0 is dhcp. eth2 is static I am attemting to use dnsmasq to create dns caching and dhcp on LAN. I commented out dns-dnsmasq in NM, downloaded and installed dnsmasq, and configured dnsmasq.conf, but no caching and no dhcp. If clients are set to static ip and gateway, etc. then they go to internet fine. dig shows repeated 50ms to google.com and client shows "unknown network no internet" when i re-set the properties to dhcp. (Hardware)