I'm 95% confident that the Mac won't be serving DHCP...
It does:
http://developer.apple.com/library/...eference/ManPages/man8/InternetSharing.8.html
EDIT: but sadly, doesn't work for XBox, PS3 and a few other clients.
EDIT 2: You can try the hint here:
http://hints.macworld.com/article.php?story=20071223001432304
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