Our network now has two gateways to different ISPs - if I add a static route with gateway=x.x.x.x,y.y.y.y PPPoE clients will not pick up the other ISP’s DNS addresses.
I couldn’t find anything about this in the manual…
It is usually better to run your own DNS servers. The purpose of DNS is to convert url names to ip addresses. The faster this is done, the faster the link to the address is made and the web page loads. If the DNS servers are on your network, this happens much faster. If one of the upstream servers goes down for some reason, then you experience significant delays.
I would suggest you try using the MT box as your DNS server. Under IP-DNS, enter the addresses of the two DNS boxes to use. Enable the option to allow remote requests. This way your clients only need one DNS address. They query the MT box and it querys the DNS servers. It returns the data and stores it in the cache. Try this and see if it solves your PPPOE connection problem.
My DNS cache size is limited to 2mb, but rarely goes over 250k. The entries are deleted after their expire time is reached, the longest is usually 72 hours. I would imagine if the cache fills up, the oldest entries are dropped to make way for the new ones.