SteveB - Thank's for responding. Yes you are correct about ics setting up it's own dhcp and dns functions. My issue is that after upgrading to 2003 server, this functionality stopped working with any NEW pc that is brought into the workgroup. When the ics server was running w2k I was able to add a new pc to the workgroup and it immediately had all access functionality. I suspect that this may have something to do with enhanced security under Win2003 but am unsure as to how to overcome this. In any case I have finally decided to go with your 3rd option. I am interested to know the solution to this for future reference.