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Thanks for all the reply, as Paul said, the dnsmasq version doesn't 
appear to be the issue here.

I also tested dns between 2 different VM subnets, instances can ping 
each other across subnets, they can also reach dns server of the other 
subnet. But hostname can't be resolved across subnets.
Although I am not sure if this is the same issue as it is for the 
outgoing nameserver, or a feature by design ...

Thanks,
Xin

On 11/15/2013 4:35 AM, JuanFra Rodriguez Cardoso wrote:
> You can get a newer dnsmasq version here:
> http://pkgs.repoforge.org/dnsmasq/dnsmasq-2.65-1.el6.rfx.x86_64.rpm
>
> Regards,
> ---
> JuanFra
>
>
> 2013/11/14 Xin Zhao <xzhao at bnl.gov <mailto:xzhao at bnl.gov>>
>
>     Hi Terry,
>
>     I upgrade to version 2013.1.4 on all 3 hosts
>     (controller/network/compute). Unfortunately that doesn't solve the
>     DNS issue for instances.
>
>     In the dhcp-agent.log, there is a message of:
>
>     WARNING [quantum.agent.linux.dhcp] FAILED VERSION REQUIREMENT FOR
>     DNSMASQ. DHCP AGENT MAY NOT RUN CORRECTLY! Please ensure that its
>     version is 2.59 or above!
>
>     Not sure if it's critical or not ...
>
>     Thanks,
>     Xin
>
>
>     On 11/14/2013 12:36 PM, Terry Wilson wrote:
>
>             Hello,
>
>             I have a multi-host grizzly RHEL6 install, using OVS. From
>             the instance,
>             I can ping external ips, but DNS resolv doesn't work, it
>             only works for
>             other instances on the VM network.
>             If I do subnet-update to add public DNS server ips to the
>             vm network,
>             DNS resolv works for external hosts, but stops working for
>             other
>             instances on the same VM network.
>             Do I miss some configuration here?
>
>             Thanks,
>             Xin
>
>         Which version of quantum are you using? In version 2013.1.4, a
>         bug was fixed for adding a default route in the namespace in
>         which the dnsmasq agent runs so that external DNS requests
>         could be handled. See:
>         https://bugs.launchpad.net/neutron/+bug/1181378 for more details.
>
>         Terry
>
>
>
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