A very simple question that I seem unable to find a straight forward google answer for:
how do I setup a Cisco 2600 series router as a DHCP server for a network and also how do I set DHCP options (such as DNS server etc) ?
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This is pretty much the same across all versions of the IOS you might be running on a 2600 router. I'm also assuming you are familiar with general Cisco router configuration (e.g. exec mode, privileged mode, configuration mode, etc.) I've included a few of the common DHCP option in this configuration example excerpt:
ip dhcp excluded-address 172.16.1.1 172.16.1.10 ! ip dhcp pool NAMEHERE network 172.16.0.0 /24 domain-name cisco.com dns-server 172.16.1.5 172.16.1.6 default-router 172.16.1.1
Note that each pool you create needs a unique, case-sensitive, name (NAMEHERE in this example). In the example the first 10 addressed of the subnet are reserved for static use (DHCP will start with 172.16.1.11) and the clients will receive a primary and secondary DNS server as well as a default gateway.
See the Cisco documentation on DHCP pools from IOS 12.2 for more information and options.