To be honest, my linux experience is limited. I am an NT administrator that wants to replace Microsoft where it can improve performance and save money. I have been working with Linux for approx. 6 months. I have installed 4.1.2, 5.0, and 5.1.2 and have 3 SME server running as proxy/gateways/VPNs for my agency. It sounds like you want to use the SME server as a simple LAN router and DHCP server. I can not help you set up SME as a LAN router. I think (likely wrong) that IP masqerading will prevent an SME from being a LAN router without reconfiguring it. The gateway (firewall) basically requires internet IP addresses on one side and private IP addresses on the other side. I also am not aware that a single SME DHCP sever can hand out IPs from 2 subnets because the gateway would not be visible to one of the subnets, which comes back to your original post of having 3 nics in the SME server. You should keep researching this.
I suggest you seek additional assistance in the forum. Your starting point should be getting the e-smith server setup as your gateway/firewall/dchp server. When you say "insulated" I take this to mean you don't want either segments sharing resources...I can think of the following to accomplish this:
Options that make sense to me:
1a. Set up 1 subnet, select some computers for "workgroupA" and put the rest in "workgroupB". Use share passwords that are different in each workgroup.
1b. Same as 1a, except each workgroup is on its own subnet. Use one of the computers from"workgroupB" as a router (2nics). Static configure the "workgroupB" client IP addresses. This will allow seperate browser lists to exist, making it more difficult for users to find resources on in the other workgroup. Since the network has only 1 gateway, it must be routed which means users can find other computers by their IP addresses. Without a WINS server running, their will not be a simple way to translate computer names into IP address.
or
2a. Set up 2 seperarte domains with SME or Windows as a domain controller. You can then choose between a single subnet, or two subnets. If 2 subnets, each domain controller can take care of DHCP for it's subnet.
2b. Set a single subnet. Set up some computers to use SME as a domain controller. Make the other computers part of a workgroup. The workgroup members will not have rights in the domain by default. Make sure that domain usernames and passwords are not duplicated on the workgroup computers.
2c. Set up 2 subnets. SME a domain controller to the primary subnet. Use a win9x/nt/2k system as a router. Statically configure all IP settings on all clients on the second subnet. Use another domain controller or a workgroup on the second subnet.
or
3. Set up a single subnet. Purchase a "managed" switch to set up V-Lans. (Virtual Lans) which can allow you to control the follow of data through the switch. Managed=more $$$.
Hope this helps.