This was no quick google search or RTFM. After visiting many sites, many dead ends, and a little trial and error, I figured this out:
- Log in to pfSense 2.0 instance via the web interface.
- Go to Services-> DNS Forwarder (http://pfSensense_url/services_dnsmasq.php)
Click the Advanced button Add as many of the following as you need, each entry on a new line.
Where dev is the end of the wildcard entry, and 127.0.0.1 is the ip that these wildcard names will resolve to. Think of dev as *.dev, but only list the part after the dot. So myhost.dev, myhost.subdomain.dev, and anything else that ends in .dev and is not defined elsewhere, will resolve to the ip provided.