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Cisco being used as DNS server?

I was doing some research and it appears as if you can use certain Cisco routers as DNS servers?
Can someone briefly explain if this is better/worst than having a software based DNS solution (win2k DNS service etc)?

You can do the same with DHCP I saw too.  Which would be better, using your router for just routing. Or using it as a DNS server etc?
Thanks
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thanks man