well in winsysdir/drivers/etc there is a host datei. You can put in serverip & name here and the client will know where the server is.
This is not a new or I guess even recommended practise, becasue it would mean changing (copying) the host file on all client pcs, and when something changes you have to copy it all again....
Your network is not setup properly.
My network is as following
DSL Router 10.0.0.138 (routes all wanted traffic to 10.0.0.1)
E-smith (Nic1) 10.0.0.1
E-smith (Nic2) 192.168.1.1
Clients 192.168.1 101 -185
Default Gateway for clients is 192.168.1.1
I have only got the router because I had trobles in Holland getting what I wanted! (Thought I was buying an ethernet modem and got this junk

)
The e-smith server can handle Internet connections quite well, and the router is really not needed.
Schotty