Anybody know why the opendns dnscrypt resolver is not working?

You need to first remove current dnsmasq.

opkg remove dnsmasq

It's also good to backup your current dhcp cofiguration before installing dnsmasq-full

mv /etc/config/dhcp /etc/config/dhcpOLD

Then you can install dnsmasq-full

opkg install dnsmasq-full

After you installed it you need to add this to dhcp config file under section config dnsmasq

option dnssec '1'

After you do this you can only use resovers which support DNSSEC. About the location I'm using multiple resolvers and some of them are from Australia (I live in Europe). As long as you have enabled dns cache entries, you are good to go.