DHCP is supported in System 7. I haven't used MacIP, but with Open Transport and DHCP, the system won't display an IP address in the TCP/IP control panel until you initiate a TCP/IP session. Launching a browser and requesting a page would be an example.
If you have a fair bit of RAM (≥32MiB) and are running 7.6.1, I find Netscape Communicator 4.0.8 to be quite stable. This is the last 68k release. I believe 7.6 is a requirement. I have Communicator rather than plain Navigator as Composer is a trip down memory lane for me. I also have tried the most recent 68k version of iCab, but it tended to hang and require reboots intermittently. Internet Exploder 4.0.1 seemed to work okay. Modern "responsive design" sites work very well in Netscape 4.0.8
If you have a fair bit of RAM (≥32MiB) and are running 7.6.1, I find Netscape Communicator 4.0.8 to be quite stable. This is the last 68k release. I believe 7.6 is a requirement. I have Communicator rather than plain Navigator as Composer is a trip down memory lane for me. I also have tried the most recent 68k version of iCab, but it tended to hang and require reboots intermittently. Internet Exploder 4.0.1 seemed to work okay. Modern "responsive design" sites work very well in Netscape 4.0.8