1. one PC which is connected to Cable modem, say the mater host, would have to install another NIC to communicate with those hosts in your local network, which the IP Address assignment is on you demand.
2. the master host would be a Proxy server, that is, it provide internet access request proxy function to those hosts that are locating in your local network, which are using invalid IP Address. Basically the master host, which is Internet Proxy server, would provide internet proxy function, that is, TCP Port 8080. in addition, it would also "proxy" another type of services, like SMTP, DNS, etc.
3. and I'm using Proxy+ which is free Proxy server, you could download it at http://www.proxyplus.cz/en/.
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