Of course with the config I pasted it would require Shando to have a switch, and create the appropriate VLAN on the switch, etc. If there is another available interface though you could just assign the IP to it, but the "cleanest" way would be to create a seperate vlan on the switch.
Also a...
Burt, I am tracking with the above config you placed but what is the purpose of the static route on the local router?
Here is how I would have configured it in his situation. Let me know what you think.
Router1(config)#ip dhcp pool new_pool
Router1(dhcp-config)#network 192.168.3.0 255.255.255.0...
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