Router, ISP, DHCP

By ferlin_pedro ·
My problem is that my ISP (wireless) complains that my ip is sending DHCP packets to their network. They assigned me with a static IP address of My gateway is and likewise my DNS.

I configured the router to use DHCP and within the router assigned the static address the ISP gave me within STATIC IP. I'm using a linksys WR54G. To try and rectify the problem:
I disabled the scope from my server which i have running.
I ran the internet cable to a hub>then a cable from the hub to a switch. A cable is plugged into the switch to the router in the internet port.
A cable from the router to a port in my server.
A cable from port 2 of the router to the switch.
Client computers are then plugged into that same switch.

I get everything functioning perfect. Until my ISP called and said they are seeing DHCP packets being distributed through their network that they will disconnect me immediately if i don't do anything about it. I have my router set as and my server address is
I want my server to host DNS so my router configuration is as follows:
DNS 1: >>> My Server

I've tried many different configuration and wiring system to make that issue no more, what can i do the rectify a problem like this one? Does my ISP not support routers using DHCP fully? Is my server sending any of those packets even though it's only plugged into the router and giving out no scope IPs (scope options disabled). Or is the router the fault with IP settings. Any tool i can use to investigate more?

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