Question : Windows 2000 Server Router Service and physical router in same network have same LAN static IP address of 192.168.1.1 - isn't that a problem?

The following services are enabled on the Windows 2000 Server:
DHCP configured automatically
DNS configured with static IP addresses that relate to the user's website (not ISP's)
Router Service with staic IP address of 192.168.1.1
IIS Services enabled which are not in use to my knowledge.
Static IP address assigned to server of 192.168.1.99
The server's primary function is a database server for Encompass

In addition there exists on the local network a physical router configured as follows:
LAN IP 192.168.1.1
WAN IP static provided by ISP
DNS Servers IP is as listed on Windows Server and optionally that provided by the the ISP
Gateway IP Address is as provided by ISP

Primary purpose: Encompass software accesses Windows Server using static WAN IP address provided by ISP and port 80 which has been allowed through the physical router's firewall

Because i noticed that the static LAN IP address of the physical router and the Windows 2000 Server Router Service were the same and because i thot this would cause a conflict, i changed the physical router's IP to 192.168.1.2
All was fine on the internal network but this change prevented the remote client from accessing the Windows Server using Encompass software.

My question is: shouldn't the 2 routers have different ip addresses to avoid a conflict and if so how can i change the physical router (because that is the one i'm more familiar with and more comfortable changing) and still allow the Encompass remote access.
or optionally, if necessary, how can i change the Window 2000 Server router service static address and if i do, what kind of awful repurcussions will there be, if any?
or should i just be shutting the DNS and/or DHCP and/or Router and/or IIS server functions off, on the Windows 2000 Server
i have to say, there have been a lot of network issues relating to access of this server but none that i am aware accessing the network client systems or accesing the internet
i am also not very familiar with Windows 2000 Server no nearly as much as with networking in general

i also noticed that the both routers were acting as a DHCP server and so i set them to assign addresses from a different part of the pool (ie: windows server was set to assign from 192.168.1.3 to 192.168.1.25 so i set physical router from 192.168.1.26 to 192.168.50)

interestingly, when i set the physical router static LAN IP to 192.168.1.2, i had to change the local client machine's NIC gateway to 192.168.1.2 to allow internet access
and it didn't seem to matter what dns addresses i used, whether from the ISP's or the user's website

physical configuration is otherwise very simple, 1 windows 2000 server and 3 client machines with windows 2000 conected to the network through a switch which then connects to a router which is connected to the ISP's dsl modem

Answer : Windows 2000 Server Router Service and physical router in same network have same LAN static IP address of 192.168.1.1 - isn't that a problem?

OK. That really helps :)

1. The router option in the dhcp scope on the server is an awful word for Microsoft to use. In this contect only, for Router - read The setting I will give to dhcp clients to set as their default gateway will be the value in the 003 dhcp scope. So in fact that router option in the scope is just terminology, its not an actual, physical router. Bottom line, this can stay as it is and does not need changing and no conflict is being caused. It simply sets the default gateway for the clients and in this case tells them to point at 192.168.1.1

2. DNS.  This is where it goes wrong I think.
a) The DNS forwarders on the server shold be ALL of the dns addresses given to you by the ISP.
b) the DNS entry in the network card (tcpip properties - advanced) of the server should be set to itself only(192.168.1.99)
c) The DNS servers in the server dhcp scope should be set to 192.168.1.99 only.

Now when the server or the clients want to use DNS, they ask the server at 192.168.1.99. If the server does not know the answer, it sends th request on to the ISP's dns servers using the ip addresses set within the forwarders tab on the server.

The part I am a little confused about is this unless it is a typo error....
<<Gateway: 192.168.1.1 (autoassigned) => 192.168.10.1 (static - Router LAN Address)>>
did you mean to put 192.168.10.1?

Do you get the way we are going with this?

Regards
keith