Separate names with a comma.
Thanks Elric, that works.
When the guest VM is resolving a domain name, it connects to a DNS Server provided by Parallels (prl_naptd). This in turn seems to ask the DNS...
Sorry for the delay, work has stopped me being able to look at this (need to restart many times, and dedicate quite a bit of time checking)....
Is it possible for dnsmasq to run on a Parallels virtual network interface (vnic0)? vnic0: ... inet 192.168.2.2 netmask 0xffffff00 broadcast...