While corporate networks implement DHCP servers that manage the assignment of IP settings, many smaller businesses and home networks do not. To make the configuration of small networks as easy as possible, Microsoft has provided support for APIPA with Windows XP Professional. This allows a collection of computers connected together using a small network hub or switch to automatically configure their own IP settings and establish as a network with zero administration. This network allows each computer to configure an IP address on a Class B network of 169.254.0.0 with an IP address of 169.254.0.1 to 169.254.255.254.
This network configuration facilitates disk and printer sharing between network computers. Microsoft also supplies Windows XP Professional with ICS. ICS allows one computer on a small network to share its Internet connection with all the other computers on the network. If ICS is enabled, the computer where it is running automatically provides DHCP services. This configuration includes the assignment of the following TCP/IP settings:
IP address
Subnet mask
Default gateway
The computer providing the ICS service sets up a network with an IP address of 192.168.0.0 and automatically assigns itself a local area network IP address of 192.168.0.1. It then assigns an IP address between 192.168.0.2 and192.168.255.254 to other computers on the network. In order for the other network computers to work properly on the small network, they must each be configured to use DHCP, as outlined by the following procedure.
Click on Start and then My Network Places.
Click on View Network Connections.
Right-click on the Local Area Connection icon and then select Properties.
Select Internet Protocol (TCP/IP) and then click on Properties. The Internet Protocol (TCP/IP) Properties dialog appears.
Select Obtain an IP address automatically.
Click on OK.
If a small network uses an Internet gateway appliance instead of ICS to set up shared Internet access, the Internet gateway appliance provides DHCP services and handles the assignment of IP address, subnet mask, and default gateway settings. In this case, the private network address assigned by the gateway device varies based on the manufacturer's specification. However, administrators can usually modify the configuration settings used by the Internet gateway appliance if desired.