Ideally you want DHCP to be running from your DC, not a router. If you did this same setup with a 2K server, you should have had the same problems back then also.
Your errors are related to DNS. Back in the Win9X client days DNS was really only used for internet resolution...but with 2K Server with AD and DNS, and 2K or higher clients, DNS is now also used for name resolution within the network. If you have Win9X clients on the network you should add the WINS service to your server for proper Win9X name resolution.
Lets assume the following network setup as an example.
You have a router, lets say it's LAN IP is 192.168.1.1. That router is the gateway for your network, unless your running some proxy software on the server like ISA. But I'll assume you have a basic setup.
Log onto your router, go to the status section, and write down the 2x DNS servers that your router obtains on the WAN port from your ISP.
Your DC servers IP address is 192.168.1.11.
First, you need to setup your servers TCP/IP properties correctly. Assuming the example,
IP 192.168.1.11
SNM 255.255.255.0
GTWY 192.168.1.1
DNS 192.168.1.11 (note you put it's own IP address in, so it looks up DNS to itself and reports in to itself...nothing else is put in here)
WINS 192.168.1.11 (If you're running the WINS service, same reasoning as above)
Now lets finish one more step on your DC...and that is to make sure the DNS service is setup with "forwarding". In your servers management console, drill down in the services...into your DNS service, right click your servers DNS object, properties, you'll see a Forwarding tab there. Remember when you looked at your routers status section, and wrote down the 2x DNS servers that your ISP was handing out? This is where you enter them.
If you had another server on your network that is a member of this domain, it would have something like
IP 192.168.1.12
SNM 255.255.255.0
GTWY 192.168.1.1
DNS 192.168.1.11
WINS 192.168.1.11
Now your client workstations should be treated similarly, say your DHCP scope hands out addresses starting at .100 on up....they must use your DCs IP address as their one and only DNS server, and if you're running WINS for Win9X clients, the IP of the server running the WINS service.
So a client workstations IP setup would look like the following,
IP 192.168.1.100
SNM 255.255.255.0
GTWY 192.168.1.1
DNS 192.168.1.11
WINS 192.168.1.11
Next workstation, 192.168.1.101....etc etc...
Now since we setup the network this way, all requests are being made to your DC, it is the boss, it's answering everyone. And any requests for internet made that your DCs DNS service does not know, it will forward those requests onto your ISPs DNS servers and get the answer. Proper name resolution within the network should now occur.
I have a feeling your clients were picking up the 2x ISP DNS servers from your routers DHCP service...which naturally don't know who/what your server/domain is. Hence lack of local name resolution.
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