Question : Write a Windows DHCP server in Python?

Would it be possible to write a DHCP server for Windows using just Python? Or would this be better left to a language like C\C++?

Also, any reasons why this might end up being particularly difficult to do? Any advice or starting points?

Answer : Write a Windows DHCP server in Python?

First of all you can write anything in Python. The major advantage of writing Python software is that it may very well be OS independent, i.e. your server may run Linux, Windows, MacOS and other operating systems with little or no change at all.
About your idea, there actually is a Python DHCP server listed on sourceforge but it hasn't released any version yet.
To write a DHCP daemon in Python or any other language you need to
1) Read and understand the DHCP RFC - http://www.ietf.org/rfc/rfc2131.txt
2) Implement the protocol using your favorite language.
Whether it is a good idea to use Python for that purpose? I assess that a network with a few to a few hundreds of clients will be able to use a Python DCHP daemon with no problems.
For huge enterprise networks you may want to use C/C++.
Please note that Windows Server 2000/2003 already has a built-in DHCP daemon.