I am not too sure about this but you can give this a shot, you either need to have a local DNS resolving DNS names/hostnames etc or you need to add the Machine IP addresses and their corresponding names in /etc/hosts of the Squid Machine.
So for example, if the Squid server is 192.168.1.2 and a client machine is 192.168.1.4 then in /etc/hosts of 192.168.1.2,
192.168.1.4 machine1
where machine1 is the hostname/name associated with 192.168.1.4
As for your DHCP problem, can you post the output of the following commands,
Quote:
/etc/init.d/dhcpd restart ; tail -f /var/log/messages
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