I don't have any immediate ideas about where the problem may be but will ask a few questions which will hopefully clarify the problem.
Are you using dnsmasq as a DHCP server, a DNS lookup service or both?
When you write "I'm sharing the wireless signal (wlan0)" do you mean that other computers on your LAN are connecting to the Internet via wlan0 on this system, that is they are using this system as a gateway?
If so, what have you done to set up this system as a gateway? In particular is there anything in that configuration which is validating the gateway clients?
Please post the output of
Code:
cat /etc/dnsmasq.conf | grep -E -v '^#|^$'
cat /etc/resolv.conf | grep -E -v '^#|^$'
cat /etc/hosts | grep -E -v '^#|^$'
cat /etc/nsswitch.conf | grep -E -v '^#|^$'
If your dnsmasq.conf has an uncommented resolv-file= line please also post similar for the file named on that line.