As far as I can tell, KitKat DNS settings operate differently. The "Use VPN DNS Server" option no longer works. I tap into the network and use the gateway of the VPN I'm tapping as my DNS as the VPN would. I use the "Override DNS" app to do so:
https://play.google.com/store/apps/details?id=net.mx17.overridedns. This is the only DNS app that applies the new KitKat DNS assignment. The option to "setprop net.dns1" in terminal no longer works for all apps. A quick test a
http://ipleak.net shows the DNS settings do not apply to Google based apps, only Firefox.