I would actually recommend using dnsmasq as a dhcp server. It combines DHCPD and DNS into one service making it perfect for a router to a small network. It is easy to install and configure also. All I had to do was uncomment 2 things in the conf file and it did everything else as default. I'm not sure what distro you have but you may be able to get a dnsmasq package for it. Otherwise you can download and install from the source.