|Where did you get the guide to set this up??? It is incorrect.|
Correct setting should be:
Windows 2003 Ent:
DNS: 192.168.0.220 [dns server points to itself]
127.0.0.1 should not be for dns imo for windows dns. I have usually seen this from a linux person coming to a window platform.
Windows 7 Pro machine
Default Gateways: 192.168.0.1, 192.168.0.220
Your server is not a gateway. You can't have multiple gateways in a subnet.
DHCP Server: 192.168.0.220
DNS Servers: 192.168.0.220, 192.168.0.1