Lets suppose I define an IP address reservation in Windows Server 2003 DHCP Server. Is it mandatory to define an exclusion of this IP address also?

IP Scope: 192.168.1.1 to 192.168.1.5
IP Reservation: 192.168.1.2
IP Exclusion: 192.168.1.2 <-- is this entry mandatory?

What will happen if the entry is not present? Is there a 20% chance the IP address will be assigned to some other computer?

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up vote 3 down vote accepted

Nope. The reservation will automatically create a "hold" on that IP address preventing it being issued to something else.

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