Placing Win2003 Ent DHCP server into 192.254.x.x subnet

Hello,

If I am not mistaken the 192.254.x.x subnet is considered reserved for
autoassigned adresses. However, can I configure my DHCP to live in
this address space? The problem is that if I lose my DHCP
connectivity, XP will auto-assign itself an address from the indicated
range. That could break some legacy applications we have that are
subnet-aware. So, is it safe to make DHCP server maintain this
address range. That would provide at least some redundancy should
DHCP go down.

Thanks for your help
Alex.

Oops! I meant the 169.254/16, Sorry for the confusion

Having examined the dhcp RFC and the ipv4 link local RFC, I found that
using the 169.254/16 ip block is not prohibited, but rather
unrecommended. Shouldn't a compliant server allow me, at my own risk,
to do so? I tried setting the range 169.254.0.10-169.254.0.127, but
the server rejected it. However I thought it might have something to
do with the fact that the server itself resides in the 192.168.0/24 ip
block (it was a hassle to change that since it has too many things
configured on it already). Am I trying to do something impossible on
this version of the server? Or should I just tweak something to
enable the "risk mode", so to speak?

Thank again.
Please, reply if you have any ideas.