You should have a couple of things clear
1. Windoze networking is NetBEUI based ( the login / esc u refer to ) and
has not bearing on the other protocols you have implemented ( unless you
have integrated your Linux box on the Windoze network with SAMBA - for which
you need TCP/IP on the client machine to share the Linux box samba shares
coz SAMBA runs SMB over TCP/IP)
2. The internet access you talk of has been achieved with tcp/ip ( proxy
server )
Now you wish to implement user login control for  tcp/ip
Well you have the option of implementing a ppp connect over the LAN
Search and read docs on implementing ppp over ethernet and create ppp
accounts for those users.
3. Running DCHP for 7 clients is an overkill and an unecessary burden.
Assign the IP addresses manually.

Regards,
Sunil Dhaka


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