DHCPd sending lease expiration of 3600 seconds

[Geoff Sweet]

On my CentOS 5.2 system I am setting up some network services for our
corporate environment. DHCP works great EXCEPT that clients are getting
a lease from the server that expires in 3600 second even though the
config says otherwise. Here is my config:

#####
# server is authoritative
authoritative;

# allow for booting over the network
#allow booting;

# allow for booting
#allow bootp;

# TFTP server for booting
#next-server 192.168.1.2;

# kernel for network booting
#filename "pxelinux.0";

# setup dynamic DNS updates
ddns-update-style interim;
ddns-updates on;
ddns-domainname "x10.com";

# lease expiration
default-lease-time 86400;
max-lease-time 86400;

# control client behaviour
allow unknown-clients;
ignore client-updates;

key rndckey {
	algorithm	hmac-md5;

	# get from the /etc/rndc.key file
	secret		"R7+OZq87s/+0MiP+g2Mf0w==";
}

# forward zone to update
zone x10.com
{
	primary 127.0.0.1;
	key rndckey;
}

# reverse zone to update
zone 11.168.192.in-addr.arpa
{
	primary 127.0.0.1;
	key rndckey;
}

# fail over configuration
failover peer "x10-corp" {
	# This is the primary
	primary;

	# primarys ip address
	address 192.168.11.22;
	port 647;
	
	# peer's ip address
	peer address 192.168.11.23;
	peer port 647;

	max-response-delay 60;
	max-unacked-updates 10;
	mclt 3600;
	split 128;
	load balance max seconds 3;
}

# zone to issue addresses from
subnet 192.168.11.0 netmask 255.255.255.0
{
	# pool for dhcp leases
	pool {
		failover peer "x10-corp";
		deny dynamic bootp clients;         
		option routers 192.168.11.1;
		option domain-name "x10.com";
		option domain-name-servers 192.168.11.22,192.168.11.23;
		option netbios-name-servers 192.168.11.8;
		option netbios-dd-server 192.168.11.8;
		option netbios-node-type 8;
		option subnet-mask 255.255.255.0;
		range 192.168.11.50 192.168.11.220;

		host jay-clark-xp {
			hardware ethernet 00:17:31:89:03:fa;
			fixed-address 192.168.11.205;
		}
	}
}
#####

I can see clearly in a WireShark network trace that the server responds back with the lease marked as expiring in 1 hour. It's like the service is ignoring the default-lease and max-lease settings. Any thoughts?

Thanks,
Geoff Sweet