DNSMasq will not do what you need it to do 'right out of the box'. There are some things you can do to get around this:
- Assign workstations that need naming to reserved addresses in DHCP and setup hostnames
- Try modifying this perl script
that has been made to add this functionality to DNSMasq (external source and untested).
We have talked about what would be required to give users an either/or approach to DNS on ClearOS. The problem that arises time and time again is the horrible track record BIND has with security. It is and has been traditionally a big risk.
I'm sorry that DNSMasq doesn't meet your needs out of the box. I personally wish it did more.