Using DHCP from Server, not VMware

I have set up Server 2003, DNS, and DHCP on my first virtual machine.  I want my second virtual machine (windows xp) to get its IP from the first machine, via DHCP.  Ive read through the manual, but im just not understanding how VMware's DHCP and the network mapping works.  Its all a little much to wrap my head around.  Can somebody point me in the right direction here?

How can I tell which machines are using which VMnets?  Should each machine use bridged connection? 

thanks for any help