This should only be done on one device on the network!
Need to use dnsmasq to act as DHCP/DNS server: http://blogging.dragon.org.uk/howto-setup-dnsmasq-as-dns-dhcp/
Right now the sub computer acts as the DNS server, should make router do this.
Also important is to set a static IP in /etc/network/interfaces file:
auto lo etho
iface lo inet loopback
iface eth0 inet static
address 192.168.0.7
netmask 255.255.255.0
gateway 192.168.0.1