If you are using Bering-uClibc 2.2 or higher, this step can be skipped.

For older Bering-uClibc versions edit lrpkg.cfg and add dnsmasq to packages list:

root,config,etc,local,modules,iptables,keyboard,shorwall,ulogd,dnsmasq ..."

And you can remove dnscache from lrpkg.cfg, because it's replaced by dnsmasq.