I just saw this post of mike's in another thread, and I'd like to see if I get this. . .
Yes. They would need a switch that supports VLANs and the knowledge to configure it properly. The port the DSL modem was plugged into would only share a VLAN with a subinterface from the router (via it's trunk configuration to the switch). They may also need to switch from a straight through cable from the DSL Modem to a crossover cable to use with the switch.
So what you're saying is to create a vlan with exactly one port on the switch, right? Then, you set up router on a stick between your internet vlan and your 'others' vlan.
The subinterface that the internet feed connects to gets dhcp and the subinterface that the rest of your network connects to gets some private internal address. There wouldn't be any additional issues for configuring NAT (it would be as normal, right).
Would there be any performance issues from this setup?