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Is DHCP on Linksys router + DNS on Server 2003 a problem?

I've been told that using a Linksys router (WRT54G) as the DHCP server on a network with Active Directory services and a Windows 2003 Server acting as the DNS server can be a problem.

The router connects to the Cbeyond Modem and a switch that the 2003 Server and all workstations are connected to.

The Windows 2003 server has 2 NIC cards but only one is connected to the network.

Are there potential issues with this setup?

What should be done to avoid DNS/DHCP issues in this case?
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Adrian Cantrill
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DHCP is not even set up on the server.  So all should be well.

But, are there advantages to having DHCP on the server over having it on the router?
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I always use the DHCP server on server and the first reason is that it has more configuration options than DHCP server on linksys router.
Client DNS dynamic registration could be the problem if you are using windows 98 or Windows Me. Later operating systems are capable of dynamic DNS registration so they don't need DHCP server to do this for them.

Some more info here:
http://technet.microsoft.com/en-us/library/cc771732.aspx
http://technet.microsoft.com/en-us/library/cc787034(v=ws.10).aspx