dnsmasq
I was chatting to Stefan a bit yesterday, and he mentioned being on the lookout for a small DNS server that can also do DHCP, so I recommended an excellent tool called dnsmasq, which is
a lightweight, easy to configure DNS forwarder and DHCP server. It is designed to provide DNS and, optionally, DHCP, to a small network. It can serve the names of local machines which are not in the global DNS. The DHCP server integrates with the DNS server and allows machines with DHCP-allocated addresses to appear in the DNS with names configured either in each host or in a central configuration file. Dnsmasq supports static and dynamic DHCP leases and BOOTP/TFTP/PXE for network booting of diskless machines.
He seems to have been successful with it. 
I devoted a whole chapter to dnsmasq in my book Alternative DNS Servers because I also think dnsmasq is ideally suited to quite a number of installations, even medium-sized ones.
I have dismissed DNSmasq as a "toy" for far too long, until I came across your book. I now have it running on my office network as well as in my datacenter-in-a-datacenter in the colocation rack. The simple overrides for hostnames that would otherwise be resolved externally are simply priceless. I've been unable to make friends with the DHCP functionality, though. Maybe later.