Question : Can you install dhcp without installing dns

Hello,
I installed dhcp on my windows server 2008 standard, but when I connected the client and get ip: 169.254.108.3
The scope ip range should be 10.10.1.100 to 10.10.1.254
I did not install dns (may be this is the problem???), this is the only server on the network, and it 's inside the firewall. there is active directory install on this box either (it's a workgroup server).
At the "Specify IPv4 DNS Server Setting" I did not enter any data but click Next (meaning: Parent Domain, Preferred DNS Server IPv4 Address and Alternate DNS Server IPv4 Address are blank).
It's probably real simple, but hadn't work with this before.
Thanks for your help.

Answer : Can you install dhcp without installing dns

The DHCP on your server can only give out addresses to clients that are on the same subnet as one if it's NIC cards.  

I would suggest moving the static IP to your gateway router's WAN port (don't use this router in bridge mode), setup NAT & forward traffic headed to your public IP to the internal IP (10.10.1.x) of your server (you will need to change your server IP to be on the internal subnet (10.10.1.x).  Your server's gateway should point to the internal IP (LAN) on your gateway router (also on the 10.10.1.x subnet).

You could also add another NIC card that can be assigned to your internal (10.10.1.x) subnet and connect the workstations through that port.  The NIC with the public IP would need to be connected directly to you gateway router and you would need to setup a default route within your server to route your client's internet traffic through it to the gateway router.

I think the first option is the better of the two, of course depending on your ultimate goal.

Does this make sense?