ipxe and DNSMASQ

[JCDinPGH]

I have a FOG server setup and working correctly. Because I am using it at home, my FIOS router also provides a DHCP server so I want to use DNSMASQ as a DHCP proxy server to handle requests and respond with a TFTP address. So far, this is all working correctly. When I PXE boot, it correctly gets a DHCP address from the FIOS router and DNSMASQ correctly provides the TFTP ip address. IPXE correctly loads but always prompts for a TFTP ip address. I know this usually occurs when there are multiple DHCP servers in the network but I have verified the only DHCP server is the one provided by the FIOS router. DHCPD is stopped on the FOG server. To test this, I disabled the DHCP server on the FIOS router, and the PXE boot just hangs as it never receives an IP address.
I also created a menu entry in the FOG server that executes the "config" command so I could look at the IPXE settings, and I verified that the NEXT-SERVER/Option 66 was correctly set to the ip address of the TFTP server.
If I manually enter the TFTP address, which the same as the FOG server, it PXE boots correctly to the menus entries I have configured on the FOG server.
What I can't figure out is why does IPXE always prompt for a TFTP address when it looks like everything is configured correctly and I have verified there is only the FIOS DHCP router providing DHCP. I'm so close to getting this to work! Help!

Below is my /etc/dnsmasq.d/ltsp.conf file.

Code:

port=0

log-dhcp

tftp-root=/tftpboot

dhcp-boot=undionly.kpxe,192.168.1.5

dhcp-option=17,/var/www/html
# tried both of below with no luck but these shouldn't matter since IPXE is loading
# dhcp-option=pxe,66,192.168.1.5
# dhcp-option=66,192.168.1.5

dhcp-option=vendor:PXEClient,6,2b

dhcp-no-override

pxe-prompt=.Press F8 for boot menu., 3

pxe-service=X86PC, .Boot from network., undionly.kpxe

# pxe-service=X86PC, .Boot from local hard disk., 0

dhcp-range=192.168.1.5,proxy,255.255.255.0