Error starting DHCP: No subnet declaration for eth0 (192.168.0.1

Xubuntu 8.04 i386. Loaded with Dhcp3-server.
Error using Sudo/etc/init.d/dhcp3-server start:
APR 14:24:03 s Dhcpd:wrote 0 leases to leases file.
APR 14:24:03 s DHCPD:
APR 14:24:03 S Dhcpd:no Subnet declaration for eth0 (192.168.0.1).
APR 14:24:03 S DHCPD: * * Ignoring requests on eth0. If this isn't what
APR 14:24:03 s dhcpd:you want, please write a subnet declaration
APR 14:24:03 s Dhcpd:in your dhcpd.conf file for the network segment
APR 14:24:03 s dhcpd:to which interface eth0 is attached. **
APR 14:24:03 s DHCPD:
APR 14:24:03 s DHCPD:
APR 14:24:03 s Dhcpd:not configured to listen on any interfaces!

Eth0 connection of the system to the intranet
inet Address: 192.168.0.1 Broadcast: 192.168.0.255 Mask: 255.255.255.0
The eth1 of the system is connected with the external network

/etc/dhcpd.conf content is

Option Subnet-mask 255.255.255.000;
Default-lease-time 600;
Max-lease-time 7200;
Log-facility Local7;

Subnet 192.168.0.0 netmask 255.255.255.0 {
Range 192.168.0.101 192.168.0.200;
Option routers 192.168.0.1;
Option broadcast-address 192.168.0.255;
Option ip-forwarding off;
}