I am setting up a lab to test Windows Deployment Services. I have installed a domain controller, which is also set as the DHCP server. I am now trying to add another server to the network which will be the WDS server. Although the server will have a static IP address, I have discovered that the server was unable to obtain an IP address from teh DHCP Server. I also added a windows 7 client and it could not get an IP address either. I checked teh Windows firewall and port 68 and 67 are open. I ebven went as far as disabling the firewall.A network capture shows that the client issues a DHCP Discover fron source 0.0.0.0 to 255.255.255.255; a dhcp offer from 169.254.0.1; a DHCP Request from 0.0.0.0; a DHCP ACK from 169.254.0.1 and finally a DHCP Offer from 172.16.0.1.From the above it seems to me that the client is issuing itself and IP address before the DHCP server (172.16.0.1) can respond to it... Is teh client not supposed at this stage release the APIPA address and request the one from the DHCP Server?When I connect the client to a router on a seperate network (windows 2003), it successfully gets an IP address...Is there something I am not doing right with teh windows 2008 DHCP server? I have used the Microsoft guidlines ( http://technet.microsoft.com/en-us/library/dd296678(WS.10).aspx )

What happens if you run netstat on the server? Does it show that it is listening on the DHCP ports? Any errors in event log? What other roles do you have installed on the server?

Netstat -ab shows the following (NB: I have only included the DHCP bit - let me know if full output required?)***********************************************UDP 172.16.0.1:67 *:* DHCPServer [svchost.exe] UDP 172.16.0.1:68 *:* DHCPServer[svchost.exe]**********************************************The server has the following roles:Active Directory Domain Services (Writable Domain Controller)DNS ServerDHCP ServerWindows firewall is currently disabled for ALL profiles.There are no errors in the event log relating to DHCP. only entry is for servcie startup and server successfully verifying it is authorised to issue IP addresses.

Is WDS installed already? If so did you disable it from listening on the DHCP ports?

WDS is currently not installed. I beleive this is a virtualisation issue rather than a windows issue. I realise I failed to mention earlier that all this is running on Windows Virtual PC... I have tried to reproduce the same on vmware - esx 4 host and the same occours!!!I have just connected the to guests in question to a physical switch and guess what,,, DHCP works! The client can get an IP address from the DHCP server and the 169.254.0.1 address is nowhere to be seen in the network capture, I am going to raise a case with microsoft and see what they have to say about this...

Below is the response from Microsoft Virtualization Team - and this is the fix. I have tried it and my clients can now get dhcp assigned IP Addresses:************************************************************************************************************************************Yes this is a known issue that when you connect the virtual machines to internal network, it gets the IP address from the internal network inbuilt DHCP server. You can work around this as follows- Hibernate/Turn off all the VMs. From Task Manager, kill vpc.exe if it doesn`t exit on its own.-Edit "%localappdata%\microsoft\Windows Virtual PC\options.xml"-In the XML file -> Under the "internal network" node: i.e. "preferences\Virtual Network id =0\virtual_server\dhcp\" , set enabled = false.-Turn on the VMs and verify the scenario.*************************************************************************************************************************************Looks like this "issue" is known only internally at microsoft as I spent hours seraching the net for this and as I said in my last post narrowed it to the virtualisation product. Why they don't add an option to disable internal DHCP is open to debate...

Thanks for your sharing, Kelvin.Have a nice day.This posting is provided "AS IS" with no warranties, and confers no rights.

Thank you Kevin, i'm using loopback microsoft adapter on host windows 7, but it is a temp solution.

Below is the response from Microsoft Virtualization Team - and this is the fix. I have tried it and my clients can now get dhcp assigned IP Addresses:************************************************************************************************************************************Yes this is a known issue that when you connect the virtual machines to internal network, it gets the IP address from the internal network inbuilt DHCP server.You can work around this as follows- Hibernate/Turn off all the VMs. From Task Manager, kill vpc.exe if it doesn`t exit on its own.-Edit "%localappdata%\microsoft\Windows Virtual PC\options.xml"-In the XML file -> Under the "internal network" node: i.e. "preferences\Virtual Network id =0\virtual_server\dhcp\" , set enabled = false.-Turn on the VMs and verify the scenario.*************************************************************************************************************************************Looks like this "issue" is known only internally at microsoft as I spent hours seraching the net for this and as I said in my last post narrowed it to the virtualisation product. Why they don't add an option to disable internal DHCP is open to debate... I'm sorry. I am confused. I do not have any of these folders/files you reference. Are we talking about Hyper-V here?I am having this issue, however I don't find this answer to speak to any directories on any of my servers (hypervisor or VM).Please help. Thanks.~Lee

Lee, this is for Windows Virtual PC that shipped as an add-on to windows 7.