You can set one to a Master, and the others to not try and force, which should resovle some of your issues.
http://www.howtonetworking.com/index.htmGreat site for up to date information, as well as some of the basics....
Personally, I would use Static IP's for the clients on something this small....
"Machines cannot connect to the internet or access the server drive."
This doesnt sound too good though.... Think this is caused by all the Browser Election traffic?