Two DHCP servers in the same scope – what happens when one runs out of IP addresses

Yes, this will work. DHCP is a broadcast based technology and since broadcasts are not forwarded across routers by default (unless you configure them to by enabling broadcast forwarding or configuring a dhcp helper address) you should have no problems with machines getting their ip addressing information from the correct DHCP server.

This is kind of an old post, but it still comes up in search results, so I'm going to add to it.

First: having two DHCP servers in a subnet is not going to cause problems no matter what, that's a very misleading statement. What will cause issues is two DHCP servers which are offering the same pool of addresses. You can have two servers offering different ranges of IP addresses (like 192.168.1.1-100 on one and .101-200 on a second) within the same subnet without causing any issues at all. In fact, if you want to have redundant DHCP in your network, this is a recommended/best practice way to do it.

Second, here's some instructions from Microsoft which may get someone a little closer if they happen to have a similar issue: http://technet.microsoft.com/en-us/library/ee405264(v=ws.10).aspx