I solved this problem by stopping and restarting the DHCP server.
As per Microsoft: "The Point-to-Point Protocol (PPP) engine on the server side, cannot get IP addresses from the DHCP server and assign an automatic IP address to the clients. Since the client gets an automatic private IP address, it might not have access to all the resources on the network". Check whether the DHCP server is running and properly configured. See MSW2KDB
for more details on the problem.
I had this error on a Small Business Server with ISA Server installed after I enabled the VPN Client Access. Remote Access could not find the DHCP because it was looking at the wrong network adapter. I solved the problem by going to Administrative Tools, Routing and Remote Access, right click on <Server Name> (local) and select Properties, select the "IP" tab and here select your local (internal) adapter from the Adapter pop up menu. Click Apply and OK. The changes will be reflected immediately and any remote clients will be disconnected, but Remote Access will find your DHCP in the internal network and clients will get the correct IP addresses when reconnecting.
The client did a broadcast for a DCHP server but it didn't receive any reply.