Essentials will automatically connect to the Internet just like any client computer, using the DHCP assigned address.
It does however use its local DNS server to resolve both local and Internet based names by overriding the DHCP assigned IP address to 127.0.0.1 (localhost).
Also, Windows 2000 SP4 and all newer machines have problems querying single label names. Because clients query DNS for AD resources (domain controller locations and other services), they may have difficulty finding resources. As I said earlier, it doesn’t matter now, because you were brought here to find out what to do with it. Hierarchal meaning it must have multi levels, a minimum of two levels.
Common Mistakes When Upgrading a Windows 2000 Domain To a Windows 2003 Domain (or any AD upgrade or installation): Another variation of the Single Label Name explanation that I had provided in a response to a post in the DNS and/or AD newsgroups at one time: The issue is the single label name. The TLD (top level domain) is the root name, such as the com, net, etc., names.
If you’re not familiar with DHCP settings though, I suggest you leave it the way it was.