Setting Up Home / Small Business Network Using Server 2008 R2


Aug 29, 2012
Hey everyone! First, I would like to say that this is my first time posting to the forums here. I have also posted this same discussion on Microsoft's technet forum. I am 22 years old studying IT-CNS (Computer Network Systems) at ITT Technical Institute and will be graduating from there March 2013. My goal after I receive my Associate's degree is to continue through the Bachelor's program and obtain my degree in ISC (Information Systems and Cybersecurity). I am also in the process of starting a small business, but need to learn a bit more first :p

Now that I've told you a bit about myself, here is my dilemma / questions to you all.

What I would like to do is create a home network from scratch that uses CIDR. I would like to have Server 2008 R2 Enterprise edition running as a virtual machine and acting as the primary DNS, DHCP, AD for my entire home network. I would also like to be able to access the internet from any PC connected to the network.

I do realize there is already a forum discussing this same basic idea here:

But, I would like to have some new input from anyone who cares to help a newbie out :)

Here are the devices I am using and my current setup (Charter is my ISP):

INTERNET -------|

Ubee Cable Modem (Model No.: DDW3611)

| and Default Gateway of

Watchguard Firebox X5 Edge

| and Default Gateway of

Linksys WRT54G V8 (with dd-wrt as firmware)

| and Default Gateway of

PC1 Windows 7 Pro (would like this PC running virtualized Server 2008 R2)

| and Default Gateway of

Wireless PC2 Windows 7 Pro

| and Default Gateway of

I would like all traffic to go through my firebox and I want to have the virtualized Server 2008 R2 leasing addresses to any client that connects and running as the authoritative DNS (from what I've read I'm not sure if that is possible)

Thank you all SO much in advance. This is already proving to be a great learning experience for me and I hope to be posting on these forums more often.

Also not sure if I'm posting in the correct area so any type of direction is appreciated!!
If the Linksys WRT54G V8 is connected to the firebox, I presume that it's static Internet IP address is on the same network, e.g., That way, all Internet traffic has to go through the firebox since the only route from the WRT54G to your ISP is through the firebox. If Server 2008 R2 is to be your DHCP server, then DHCP would have to be disabled on the WRT54G. That would work fine if all clients were connected through Ethernet, but since you have a least one wireless PC (which can't have a static IP address), you shouldn't do that. However you can still use Windows Server 2008 as your DNS by configuring it's static IP address on the WRT54G. Since the server will be hosted on a Windows 7 PC, I presume that PC has a static IP address and you'll add it to the DNS. PC1 won't have access to the Internet until the server is up and running. Honestly I don't understand why Server 2008 R2 is not running on PC1 instead of Windows 7.