DHCP setup for avaya phones not working

[PRITelcom]

How the network is setup.
I have 3 vlans

Vlan 1 - is my management vlan
Vlan 240 - is my data vlan (subnet 10.127.240.0/24)
Vlan 241 - is my voice vlan (10.127.241.0/24)

I have added 2 DHCP scopes on my windows 2003 server (ip of server 10.127.240.246)

Data scope 1 (data) 10.127.240.0
Scope options for data
3 - router = 10.127.240.242
6 - dns server = 10.127.240.246 (my tftp server is on this server)
15 - dns domain name = driveprestige.com
176 = L2Q=1,L2QVLAN=241,VLANTEST=60

Voice scope 1 (voice) 10.127.240.0
Scope options for voice
3 - router 10.127.241.254
176 = MCIPADD=10.127.241.240,MCPORT=1719,TFTPSRVR=10.127.240.246,VLANTEST=60
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I am using a layer 3 Nortel 5530 and layer 2 Nortel 5520 POE switches (all in a stack)
Routes within my Nortel Switches

DHCP route for the voice vlan as follow
10.127.241.254 (the virtual vlan router) to 10.127.240.246 (dhcp server)

Static Routes in the Nortel stack are (10.127.240.254 is my Cisco 3640 router)
0.0.0.0 (Destination) 0.0.0.0 (mask) 10.127.240.254 (next hop)
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I put a sniffer on the network. The dhcp Server sends the request to the phone (say ip address 10.127.241.1) but the phone doesn't take it. Its like it is refused. Then the phone just freezes screen say (dhcp = xx)

Please Does Anyone Have any idea!