dnsmasq is a simple dns-server for small nets using adsl etc.

install debian package dnsmasq. read doc in /usr/share/doc. See notes in readme.debian.

Edit options in /etc/default/dnsmasq. Defaults should probably be ok.

dnsmasq serves names for the local net from /etc/hosts. Clients will timeout immediately when there is no ppp connection.

Edit options in /etc/default/dnsmasq.

Set

DHCP_LEASE="/var/lib/dhcp/dhcpd.leases"
DOMAIN_SUFFIX="mydnsdomain.org"

dnsmasq must use resolv.conf from ppp which is updated on each start.

Edit options:

RESOLV_CONF="/etc/ppp/resolv.conf"
DNSMASQ_USER="root"

Edit /etc/resolv.conf so that server is using its own dns-server.

search mydomain.org
nameserver 192.168.100.1