So this is where your doing it? See pic
On your CLIENT do an ipconfig /all.. what does it show for dns for the openvpn connection?
So for example I connect to one of my vps running openvpn.. Now can you do a query via vpn, do a traceroute do you go down the tunnel to get to the dns you provided?
vpndns.png
vpndns.png_thumb
dnsonvpnclient.png
dnsonvpnclient.png_thumb
dnsqueryandtrace.png
dnsqueryandtrace.png_thumb