Ok, I can't figure out whats happening here.
The 2950 was using IP DHCP Pools to assign specific hosts static IPs. Since this is a Windows environment I chose to use client-identifier over hardware-address and has worked fine.
So here is whats going on:
************* In Config ****************
ip dhcp pool Host1
host 192.168.103.101 255.255.255.0
client-identifier 0100.1fc6.dde0.64
**********************************************************
sw2950#sho arp
Protocol Address Age (min) Hardware Addr Type Interface
Internet 192.168.103.104 2 001f.c6dd.e064 ARPA Vlan1
Internet 192.168.103.100 - 000d.bcee.fc80 ARPA Vlan1
sw2950#debug ip dhcp server packet
sw2950#
00:16:48: DHCPD: DHCPDISCOVER received from client 0100.1fc6.dde0.64 on interfac
e Vlan1.
00:16:48: DHCPD: Sending DHCPOFFER to client 0100.1fc6.dde0.64 (192.168.103.101)
.
00:16:48: DHCPD: broadcasting BOOTREPLY to client 001f.c6dd.e064.
00:16:48: DHCPD: DHCPREQUEST received from client 0100.1fc6.dde0.64.
00:16:48: DHCPD: client rejected 192.168.103.101.
00:16:57: DHCPD: DHCPINFORM received from client 0100.1fc6.dde0.64 (192.168.103.
104).
Any suggestions on how to resolve this issue?