Centos server keeps jumping to address instead of static assigned address

You don't need PEERDNS since you're using a static IP. This is causing dhclient to run and update your resolv.conf file (as it's designed to do). In the process, it also requests an IP address when it requests the nameservers from DHCP.

plain and simple solution: deinstall what you dont need :)

yum remove dhclient 

To assign a fixed IP address, use none as the value for BOOTPROTO.

From the "RHEL5 Deployment Guide", section "Interface Configuration Files":

BOOTPROTO=protocol

where protocol is one of the following:

• none — No boot-time protocol should be used.
• bootp — The BOOTP protocol should be used.
• dhcp — The DHCP protocol should be used.