The DHCP Relay Agent is a special service running on Windows 2000 Server that listens to the DHCP traffic on a local network. When it hears something, it waits for a configured amount of time. This configured time allows DHCP servers from the local network to answer a client discover packet.
If no DHCP server answers, the DHCP Relay Agent will forward the DHCP traffic to a configured DHCP server on some other network segment. When a DHCP server answers the query, the query is then sent to the DHCP Relay Agent, which then forwards the packets to the local network where the client resides.
You can configure your Windows 2000 Server as a DHCP Relay Agent from the Routing And Remote Access Service console.
In this console:
Open IP Routing, right-click General, and select New Routing Protocol. Select DHCP Relay Agent and click OK. This will install the agent.
From: http://blogs.techrepublic.com.com/datacenter/?p=187&tag=rbxccnbtr1
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