I'm trying to get my clients connected to inside to route to the internet.  My current set up is:

inside: 192.168.10/24

outside 192.168.1.10

DSL: 192.168.1.254

Outside is connected to my DSL router. DHCPD is set up on inside, outside is static. When I connect via my 1242AG on my phone, it tells me "internet may not be available".  I also tried via a laptop direct on the ASA. It was showing the gateway as 192.168.10.1, so I set dhcpd option 3 to 192.168.1.254. I have set  route outside 0.0.0.0 0.0.0.0 192.168.1.254 and show route gives:

Gateway of last resort is 192.168.1.254 to network 0.0.0.0

C    192.168.10.0 255.255.255.0 is directly connected, inside
C    192.168.1.0 255.255.255.0 is directly connected, outside
S*   0.0.0.0 0.0.0.0 [1/0] via 192.168.1.254, outside

I can ping 8.8.8.8 from the ASA CLI. I also tried setting option 3 as 192.168.10.1, that also didn't work. I also tried 192.168.1.10, same issue. It is showing the gateway change on ipconfig, but it doesn't seem to want to properly route between the two zones.

Trying to add  route inside 192.168.10.0 255.255.255.0 192.168.1.254 or route inside 192.168.10.0 255.255.255.0 192.168.1.10 says "ERROR: Cannot add route, connected route exists" so I'm not sure what is wrong here. 

The DSL's gateway is 107.203.56.1, and it's IP is 107.203.56.23.  But since I can ping externals from the ASA CLI, I don't think this information needs to be set anywhere.