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DHCP Server Conflict - Small Business Network Environment

In a standard small business network environment, Windows Server provides DHCP (Dynamic Host Configuration Protocol) to the network environment.  DHCP Server dynamically assigns a TCP/IP Address to a DHCP Client.  When using the Windows Server DHCP Server Service, the LAN DHCP in the Gateway/Internet Modem is set to Disabled.  If the Gateway/Internet Modem has LAN DHCP Enabled, a DHCP Server Conflict will occur.  When Windows Server senses another DHCP Server on the LAN, Windows Server will automatically turn off the DHCP Server Service.  When this occurs, DHCP Clients will lose connectivity to the network.  Clients are then unable to access the Server, access the internet, etc.

The following two Events will then be logged in the Event Viewer:

Event ID 1053: The DHCP/BINL service on this computer running Windows Server 2003 for Small Business Server has encountered another server on this network with  IP Address, X.X.X.X...

Event ID 1054: The DHCP/BINL service on this computer is shutting down.  See the previous eventlog messages for reasons.

To resolve this issue, the LAN DHCP in the Gateway/Internet Modem should be set to Disabled.  Compuer clients will then regain access to the network by either rebooting or using ipconfig /release and then ipconfig /renew.

If your Gateway/Internet Modem includes Wireless, you will require DHCP for clients to dynamically attach to your wireless network.  The Gateway/Internet Modem should have the capability of Disabling the LAN DHCP but maintain the Wireless DHCP.  Business-class modems include this capability.  If your modem does not include this capability, you may need to integrate a Linksys Wireless Router into your network.

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