Telling the router to only give out a certain number of IP addresses shouldn't make a difference, as the router won't hand out conflicing IP addresses. The problem is that somewhere, someone has set up a computer with a static IP address - and that the DHCP server is trying to hand out a lease for that address and doesn't realize it's taken.
Check all of your computers to make sure that they're set to DHCP - and check and make sure nobody else is using the wireless part of your network.
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Eat antimatter, Posleen-boy!
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