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#21
DNS and DHCP are two separate things that work independently of each other:
The DNS server does the translation of website names to IP addresses. Its own IP address can be entered directly on the PC or, if the PC is set to "automatically...", its address will be obtained from the router setting for DNS server.
DHCP stands for Dynamic Host Configuration Protocol whereby the router gives the PC its (the PC's) IP address. This has nothing to do with translating names into IP addresses. DHCP must be enabled on the PC and the router since they work together to provide the computer with its IP address. If DHCP is disabled on one PC, you must manually enter one that will work with the router or one provided by your ISP that will work on the Internet. If DHCP is not set in the router, then all PCs on the network must each be manually set to different IP address, each of which must be provided by your ISP.