What kind of router are you working with?

It's actually fairly easy to setup the scope in the DHCP server. Then in there you can set the workstation to point to the router as the gateway.
I would setup the DNS server on the W2K server and have it do IP forwarding out to the internet - or you can just add the appropriate internet DNS entries into the DHCP server. I would go for the second option if your network is on the smaller side.

Then just point your workstations to get an IP from the DHCP server. You can even setup the server and test it with 1 or 2 workstations first, as long as your scope doesn't match the existing IP scheme you have. The Static IP workstations will just hum along as usual.