Found it. It's in the dhcp conf file.
config 'dhcp' 'lan'
option 'interface' 'lan'
option 'start' '100'
option 'limit' '150'
option 'leasetime' '12h'
option 'ignore' '0'
list 'dhcp_option' '3,172.16.42.42'
list 'dhcp_option' '3,172.16.42.1'
list 'dhcp_option' '6,172.16.42.1,8.8.8.8'
list 'dhcp_option' '6,172.16.42.1,208.67.222.222'
208.67.222.222 is getting pushed to the client.
removed the last line, and the google dns address, so now it's not pushing alternate dns, but spoofhost still isn't redirecting.