This is the problem I currently have.

- We have 2 "networks" split between two offices. Both are connected with a T1, and both have 2 DSL lines (1 for web surfing, 1 for Exchange/e-mail).

- At both locations, the Domain Controller (SBS 2003) is used as the PDC, Exchange & DNS server.

- At location #1 that DC (SBS 2003) is also the DHCP server, issuing leases out. Location #1 all clients (25) are dynamically assigned, while location #2 is static because it picks up the DHCP server from location #1 whenever set to dynamic.

- Basically want to figure out a way to have them inter-operate with file sharing and network access but possible run DHCP on both DC's (I know though it's not possible). So a solution would be... help? Both networks use the 192.168.1.x IP ranges and 255.255.255.0 subnet, with their prospective gateways.

- Straight down to it, want to be able to have DHCP running at both locations, so when users "plug-in" from that location, THAT specific DC will assign a DHCP address rather than the other location's DHCP server picking it up.

block dhcp on the routers so only your local subnets get dynamic ip addresses and/or do ip reservations [ip address associated with pcs mac address]on each dhcp server

Golly gee wilerkers everyone! Learn to Internet Search

the routers are not running the dhcp services.. the domain controllers at each location are.

and they are all on 1 subnet... should it be on 2 separate ones? reservations we could do but then doesn't resolve the issue of wanting to manage the dhcp service from each location as opposed to just 1

It's possible to have both servers running DHCP and still have all clients in the same network. Simply assign half the IP addresses in the one range to both servers.
ex:
192.168.0.1 - 225 on DC 1
192.168.0.226 - 254 on DC 2

Clients should point at the local DC for DHCP.

But is there any way to have DHCP running separately from BOTH locations? Also is there a way for the clients to get DHCP based on the location? Ex. location #1 would give clients IP between 100 and 200, location #2 would give clientes IP between 201 and 240.

How are you missing the point that both suggestions are talking about running dhcp from both locations not one?

I understand you are not running dhcp from the router but that does not effect blocking dhcp traffic at the router. You don't want it going across the T1 right? That's how you do it.

Otherwise you can do ip reservations. That is two dhcp servers. Get it? One has reservations for ip to the mac addresses of the local network as does the other network and server on its local network.

Golly gee wilerkers everyone. Learn to Internet Search

sorry wanderer, it was getting me a little frazzled based on what i've been hearing.

so i'll try and install DHCP on the location #2 server and just assign loc. #2 a different range.

will this also solve the location problem? like when a user at location #1 plugs into the network how will dhcp server #1 know to give it an address versus server #2?

I remember reading an article about properly assigning scopes.
http://www.computerworld.com/securitytopics/security/story/0,10801,106946,00.html?SKC=networking-106946

Sorry, that wasn't it. That was the BASIC dhcp article.
Anyways, I'm confused about your setup. How is your point to point T1 plugging in to your SBS server(s)? Is it like SBSLocA-SwitchLocA-RouterLocA-RouterLocB-SwitchLocB-SBSLocB? What NIC interface is the T1 connection connected to on the SBS... I'm assuming the local/internal NIC.
You can really simplify this thing by just using different subnets so that each DHCP server will only broadcast to their own loaction.