Yea, for some reason the dns server on pi-hole takes the first result in the list and make it the reverse lookup IP. It should actually ignore any IPs in the reserved ranges 192.168, 10.0, 172. etc,
I.e a standard nslookup
>nslookup
Default Server: 0000mps.webpreview.dsl.net
Address: 192.168.1.4
>
I think most people are used to having their routers be the dns server, so it automatically resolves based on dhcp assignment... I wonder if the solution is this:
Set router WAN --> Your ISP or Opendns
Set router LAN assignment --> Your pi-hole ip
Set Pi-Hole DNS --> router
PCs get set to Pi-hole from router DHCP assignment.
EDIT: Nevermind, that didn't do anything.. Obviously the PI intercepts the request first and doesn't pass it to the router for assignment. I wonder if making the router talk to the PI on the WAN port and making the clients talk to the router first would be the trick