Client PC can not access Internet thru Windows 2008 DHCP, 2 Nics

The issue is that you have external DNS servers listed in the server's TCP\IP settings. You shouldn't have any external DNS servers listed in your internal network. You need to set these DNS servers up in the forwarders tab in DNS.

http://www.windowsnetworking.com/articles_tutorials/DNS_Conditional_Forwarding_in_Windows_Server_2003.html

Are you trying to route? You should also go to the TCP\IP properties of the external NIC click advance then go to the DNS tab and uncheck Register this address with DNS. Make sure your DNS server is listening on the internal NIC also.

http://technet.microsoft.com/en-us/library/cc759481.aspx

Sorry posted to quickly. The 10.0.0.0 are only used for private addressing which means it isn't routable to the internet. You must have a route setup within RAS to allow the client to ping the other address. What are you trying to accomplish?

I did setup RAS & selected NIC 1 for Internet Access. All I wanted to do is let client PC login to server and the client is able to connect to the Internet. Did you mean I should not use Primary DNS: 196.168.16.2 for internal network. I will read the articles you suggested.

This is address 10.0.0.0 is for only internal networks it isn't able to router externally. Can you give me a quick overview of your network?

I have a Cisco router that porvides the Internet access with a fixed IP. I manually assigned an IP 10.0.1.49 , gateway 255.255.255.0, gateway 10.0.1.1 for the Nic 1 of the W2K8 server so I can access the internet form the server. I, then, assign the IP of the NIC2 as 192.168.16.2, mask 255.255.255.0 and no gateway and configure as a DHCP server. My client WinXP can pickup the IP like 192.168.16.10 from the DHCP server, but cannot connect to the Internet. I am sure I did something wrong somewhere. But I don't know how to fix it.

If you have a cisco router  then you don't have to setup a route in the server. You can use one NIC card allow the clients to access the router's internal NIC which is the 10.0.0.0 network address. You can change the router's internal NIC to match the 192.168.0.0. address. You are routing twice.

I changed NIC1 to static IP as follows:
72.16.xxx.6
mask: 255.255.255.248
gateway: 72.16.xxx.1

My client pc still can not connect to the Internet. When I ping google from the client PC, it returned

www.1.google.com [74.125.47.99] .......
unreachable

Looks like it pick up the DNS info, but still can not ping to outside IPs.

Why did you change NIC1 to this IP address?

Do you have a switch?
Does the client connect to the switch?
Does the server connect to the switch?
Does the router connect to the switch?

Why did you change NIC1 to this IP address? So I can use all 5 public IPs. Right?

Do you have a switch? I connected Cisco router with a switch 1. 1st NIC connected to switch 1.
Does the client connect to the switch? client connected to switch 2
Does the server connect to the switch? Nic2 connected to switch 2.
Does the router connect to the switch?