Comment 6 for bug 26822

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Matt Zimmerman (mdz) wrote : Re: dhcp3 server respond with a "no free leases" to IP request in edubuntu

This happens because the PXE ROM obtains a lease but doesn't release it when it's finished. If enough client boots take place, these leases will consume the pool on the server.

I don't think there is much that Ubuntu can do about this problem; I'd consider it a bug in the firmware.

It's possible that the DHCP server could distinguish between PXE requests and other requests, and use a much shorter lease time for those.