Sorry, It was a long day.
What I meant was that you get a bad IP address, not a conflict, buy simply an address that when its leased causes problems so it has to be excluded.
I.e. range 192.168.1.1 - 192.168.1.255 and the IP address of 192.168.1.50 for some reason causes problems when leased out to a user.
Hope that gives you more information.
Regards,
VRIT