HOTSPOT
You have a server named Server1. Server1 runs Windows Server 2012 and has the Windows Deployment
Services (WDS) server role installed.
You install the DHCP Server server role on Server1.
You need to ensure that Server1 can respond to DHCPclients and WDS clients.
What should you configure for the DHCP service and the WDS service?
To answer, configure the appropriate options in theanswer area.
Answer: 
Explanation:
WDS Service should be “Enabled the Do not listen on DHCP ports option..”
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You are right! When the DHCP server and the WDS server are installed on the same computer, the WDS Service tries to use the port 67. However, the DHCP server already uses this port. To resolve this issue, configure the WDS Pre-boot execution Environment (PXE) client to stop listening on port 67. WDS Service should be “Enabled the Do not listen on DHCP ports option..”
http://support.microsoft.com/kb/954410
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Both of you are right!
The Windows Deployment Services PXE server must listen on three network ports:
UDP port 67: Incoming DHCP broadcast packets from PXE-enabled clients
UDP port 68: Used by the DHCP authorization process. This is only required if DHCP authorization is enabled. (DHCP authorization is also known as PXE rogue detection)
UDP port 4011: Incoming PXE traffic directed at the server by the PXE client
The Windows Deployment Services PXE server is designed to handle four configurations regarding DHCP interaction:
The Windows Deployment Services PXE server and a Microsoft DHCP server exist on different physical computers
The Windows Deployment Services PXE server and a non-Microsoft DHCP server exist on different physical computers
The Windows Deployment Services PXE server and a Microsoft DHCP server exist on the same physical computer
The Windows Deployment Services PXE server and a non-Microsoft DHCP server exist on the same physical computer
The default installation of Windows Deployment Services handles the first two configurations. That is, the server’s networking configuration upon the initial installation will successfully bind the PXE server to listen on UDP port 67. In cases where the Windows Deployment Services server and the DHCP server are located on the same physical computer (as in the last two cases listed previously), you must perform two additional configuration steps:
The PXE server must be configured so that it does not listen on UDP port 67 (so that the port may be used by the DHCP server). A registry value, UseDHCPPorts, controls whether the PXE server listens on the DHCP port:
HKLM\System\CurrentControlSet\Services\WDSServer\Providers\WDSPXE
When set to 1, the WDS PXE server will listen on port 67. Use this setting in configurations where the Windows Deployment Services PXE server and DHCP are on different physical computers. This is the default value for the setting.
When set to 0, the PXE server will not listen on port 67. Use this setting in configurations when Windows Deployment Services and DHCP are located on the same physical computer.
DHCP Option tag 60 (set to the string PXEClient) must be added to the active DHCP scopes that service network boot computers. Configuring these options are management tasks that are not handled automatically by the Windows Deployment Services PXE server. For more information, see Chapter 10: How To Use the Management Tools.
By default the Windows Deployment Services server binds to all ports in exclusive mode. This mode reserves the port exclusively for use by Windows Deployment Services and prevents any other active services from listening on the port. There are some scenarios (particularly those that require running a DHCP server) that do not support adding custom DHCP option 60 on the same physical computer as the Windows Deployment Services server. In these circumstances, it is possible to configure the server to bind to UDP Port 67 in non-exclusive mode by passing the SO_REUSEADDR option.
For more information, see Using SO_REUSEADDR and SO_EXCLUSIVEADDRUSE (http://go.microsoft.com/fwlink/?LinkId=82387).The registry key that contains the configuration required to have the server listen in non-exclusive mode by passing the SO_REUSEADDR flag is:
HKLM\System\CurrentControlSet\Services\WDSServer\Parameters
Name: SharedPorts
Type: REG_DWORD
Value: 0 = Not configured (do not bind using SO_REUSEADDR).
1 = Bind using SO_REUSEADDR. Warning: This option poses a potential security risk. This setting is only read on startup of the WDSServer service. Due to potential security concerns, setting this value at 1 is not recommended.
http://www.microsoft.com/en-us/download/details.aspx?id=9709
https://www.youtube.com/watch?v=bbExMqZ4Z7E
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I find this short article explains other scenarios as well and helpful to understand how DHCP and WDS works;
http://windowsitpro.com/networking/configuring-dhcp-and-wds
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What’s the point to keep all so many answers wrong in this site
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