Hi and thanks for the reply.
I have configured VLAN 5 exactly like you describe, except for the default gateway, which is on 172.16.3.254. Options in the DHCP scope are also configured accordingly.
The relay gateway can only hold one IP address, which makes it hard to configure multiple DHCP servers. Currently I have disabled failover for this scope.
After I set the wireless interface to "Access" and the corresponding VLAN id, like you described, I actually see DHCP leases being assigned in the DHCP server console, but the devices are still not getting IP addresses.
I will try to install Wireshark and sniff the network traffic later, to see if I can understand whats going on. Are there any log files on the DSR that I can examine?
Btw, here is a link to the latest version of the manual:
http://www.dlink.com/-/media/Business_Products/DSR/DSR%20250N/Manual/DSR-250N_Manual_EN_UK.pdfEdit: Fixed a typo.