diff --git a/patches/systemvm/debian/config/etc/init.d/cloud-early-config b/patches/systemvm/debian/config/etc/init.d/cloud-early-config
index 10f44276bfb..d649812051c 100755
--- a/patches/systemvm/debian/config/etc/init.d/cloud-early-config
+++ b/patches/systemvm/debian/config/etc/init.d/cloud-early-config
@@ -270,19 +270,6 @@ setup_dnsmasq() {
     echo "dhcp-option=119,$DNS_SEARCH_ORDER" >> /etc/dnsmasq.conf
   fi
   
-  if [ "$USE_EXTERNAL_DNS" == "true" ]
-  then
-      sed -i -e "/^[#]*dhcp-option=6.*$/d" /etc/dnsmasq.conf
-      if [ -n "$NS1" ]
-      then
-        if [ -n "$NS2" ]
-        then
-            echo "dhcp-option=6,$NS1,$NS2" >> /etc/dnsmasq.conf
-        else
-            echo "dhcp-option=6,$NS1" >> /etc/dnsmasq.conf
-        fi
-      fi
-  fi
 }
 
 setup_sshd(){
@@ -310,6 +297,15 @@ setup_router() {
   fi
   
   setup_dnsmasq
+  
+  NS=$NS1
+  [ -n "$NS2" ] && NS=$NS1,$NS2
+  if [ "$USE_EXTERNAL_DNS" == "true" ]
+  then
+      sed -i -e "/^[#]*dhcp-option=6.*$/d" /etc/dnsmasq.conf
+      echo "dhcp-option=6,$NS" >> /etc/dnsmasq.conf
+  fi
+  
   setup_apache2 $ETH0_IP
 
   sed -i  /gateway/d /etc/hosts
@@ -335,14 +331,18 @@ setup_dhcpsrvr() {
 
   NS=$NS1
   [ -n "$NS2" ] && NS=$NS1,$NS2
-
   if [ "$DEFAULTROUTE" != "false" ]
   then
     sed -i -e "/^[#]*dhcp-option=option:router.*$/d" /etc/dnsmasq.conf
     echo "dhcp-option=option:router,$GW" >> /etc/dnsmasq.conf
     #for now set up ourself as the dns server as well
     sed -i -e "/^[#]*dhcp-option=6.*$/d" /etc/dnsmasq.conf
-    echo "dhcp-option=6,$ETH0_IP,$NS" >> /etc/dnsmasq.conf
+    if [ "$USE_EXTERNAL_DNS" == "true" ]
+    then
+        echo "dhcp-option=6,$NS" >> /etc/dnsmasq.conf
+    else
+        echo "dhcp-option=6,$ETH0_IP,$NS" >> /etc/dnsmasq.conf
+    fi
   else
     sed -i -e "/^[#]*dhcp-option=option:router.*$/d" /etc/dnsmasq.conf
     echo "dhcp-option=option:router" >> /etc/dnsmasq.conf
diff --git a/server/src/com/cloud/network/router/VirtualNetworkApplianceManagerImpl.java b/server/src/com/cloud/network/router/VirtualNetworkApplianceManagerImpl.java
index d294b90616c..8975a090d68 100755
--- a/server/src/com/cloud/network/router/VirtualNetworkApplianceManagerImpl.java
+++ b/server/src/com/cloud/network/router/VirtualNetworkApplianceManagerImpl.java
@@ -1018,7 +1018,6 @@ public class VirtualNetworkApplianceManagerImpl implements VirtualNetworkApplian
             buf.append(" dnssearchorder=").append(domain_suffix);
         }
        
-
         if (!network.isDefault() && network.getGuestType() == GuestIpType.Direct) {
             buf.append(" defaultroute=false");
 
@@ -1036,10 +1035,10 @@ public class VirtualNetworkApplianceManagerImpl implements VirtualNetworkApplian
         if (defaultDns2 != null) {
             buf.append(" dns2=").append(defaultDns2);
         }
-        
-        String use_external_dns =  _configDao.getValue("use.external.dns");
+
+        String use_external_dns =  _configDao.getValue(Config.UseExternalDnsServers.key());
         if (use_external_dns!=null && use_external_dns.equals("true")){
-            buf.append(" useextdns=").append(use_external_dns);
+            buf.append(" useextdns=true");
         }
         
         if (s_logger.isDebugEnabled()) {