I have a server with 2 nics, 1 is public and 1 is private, the private nic is connected to a switch which is the LAN. Can the ESXi host draw an ip address and get service through the LAN just like the other clients, from a VM (router) which is under it?
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It's possible if you connect vmkernel interface to VLAN where DHCP server VM is live. But it's strongly not recommended, especially if you have only one ESXi (e.g. your host get ip from his own guest) or you use vSphere.

Paul Rudnitskiy
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So then I'm guessing I could chain it like this: Public -> ESXi -> VM DHCP -> LAN... is it safe to have ESXi open to Public? – Theveloper Jul 30 '13 at 12:22