All that, and I figured out that dnsmasq will do exactly what I want.

Just add
address=/#/192.168.1.1
to the dnsmasq.conf file.

I tried this and didn't get the results I wanted, my server name
resolved the the address I specified in dnsmasq.conf instead of
resolving to the ip I had entered in /etc/hosts...

After rereading the documentation and checking the config file (hey
it's late cut me some slack) I realized that should do exactly what I
want.

And it does. The problem was I had typoed the hostname in /etc/hosts.
Fixed the entry in /etc/hosts, and the hostname for my file server
resolves the the proper ip but www.google.com resolves to the NSLU2's
IP! And I dance a happy dance and head for bed.

-- 
Andrew S. Zbikowski | http://andy.zibnet.us
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