When the device has a 10.0.1.x address, can you ICMP ping 10.0.0.1 with it?
(check with tcpdump if ICMP ping reaches the router)
Does your router have the correct netmask settings? The settings of the dhcp server seem correct, maybe you mistyped something on the router?
If you can ICMP ping the router, maybe you've firewalled some stuff?