Hi,
I use a DHCP relay to forward the DHCP packets from a FC 4 system to
the DHCP server running on a FC 4 system, 2.6.11. The agent gets the
DHCP discover message and adds the relay agent information and sends to the
DHCP server. I get the DHCP offer from the server which is a Unicast
packet to the IP that will be assigned to the client. Generally the
DHCP offer will be a broadcast message. Will the server send a Unicast
Offer message because of using a Relay? Because the destination IP
is not the IP of the relay, the relay is not processing the packet.

Thanks,
Dhanesh.

Have you read rfc1542 ? http://www.ietf.org/rfc/rfc1542.txt

sections 3.1.1 and 4.1.2