Router used is Netgear WNR3500L running 1.28.7482 MIPSR2-Toastman-RT K26 USB VPN
Using Static DHCP/ARP settings for devices on LAN adds extra characters to nvram dhcpd_static. I can see "<0" and "<1" without quotes after hostnames. An example would be dhcpd_static="00:11:22:AA:BB:CC<192.168.1.1<pcname<1>".
These extra characters get written to /etc/dnsmasq/hosts/hosts file when dnsmasq is started which causes local DNS lookup to fail. Using the example above hosts file is