DHCP not working on Wifi

[electr0y0]

Here's my setup:

Laptop1 with ethernet to FON and wifi to WRT54g

ICS Wifi and let FON connect via ethernet (FON's eth0 automatically gets an IP from my lappy's ethernet port)

I see the SSID MyPlace and Fred (created manually after reading digininja's comment on one of the posts)

Laptop2 connects to both MyPlace and Fred successfully but i just can't get any IP addresses. I checked the webif for network settings and DHCP is turned on for all the interfaces. What am I doing wrong?

PS: I haven't yet hooked up the FON to the internet successfully, as I don't want to just plug it directly into my WRT and i want it to go thru my lappy.

[electr0y0]

Can anyone post their dnsmasq.conf file up. I just can't get any IP leased out.