"eth0: received packet with its own address as IP address". AND adding a mirror server(a different machine). The dhcp server gave it the address 192.168.1.1
This sounds like you have two machines with the same address, 192.168.1.1. Check the interface configuration on both machines (i.e. run ifconfig) and verify.
It is possible to run mirroring, fail-over, load sharing, DHCP servers and in fact relatively easy. I am doing so right now on my own network. You need to configure them for this purpose, though, as they need to be aware of and communicate with each other. If you simply put two DHCP servers on the same network, they will conflict and both try to issue requests, read address collisions and race conditions. A simple search on the subject of backup DHCP should point you to plenty of documents on how to correctly implement this.