The only downside to using a Cisco Router as a DHCP server is manageability. With a Windows, or Linux DHCP server you have much more options as far as administrating and reporting of usage.
The first step in setting up a DHCP server is setting your exclusion range. This is usually a good idea since you would want a range of static IPs for your router, and switches.
Next we will name our DHCP pool. In this example I have named my pool LAN.
Next we will set the network that this pool will assign addresses to. This command is one of the few commands that allows you to use CIDR
Finally we will set the DNS server and default route for the pool
There are a few useful debugging commands, also a command to clear all leases
show ip dhcp binding and show dhcp server statistics shows useful information on your DHCP server. clear ip dhcp binding <address> removes a single address, while clear ip dhcp binding * will remove all assigned addresses.
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