If you're using Win98 in the network, you would want to install NetBEUI for WinXP. It comes on the cd, but does not get installed by default. They do this because only older legacy OS's are using NetBEUI. That will let your Win9x machines see your XP machine. For Win2k, I do believe NetBEUI is installed, but cannot remember. Windows 2003 server is just that, a server OS, and yes, you can use it as a server right out of the box. They expect for legal usage you will have CALs (Client Access Licenses) on paper, or something to show that you have paid for them. I wouldn't worry about it too much about it.
The only thing that I would tell you is that you do not need to use Win2003 Server as a desktop OS. Many software programs out there will not allow you to install their software because you are using a "server-based" OS. One example I can think of is Symantec. You would not be able to install Norton AntiVirus 2004 on the Win2003 machine. Why? Well, what good administrator would? NAV2004 is a home-user program, not an enterprise program. For and enterprise OS, you use enterprise software. Much harder to find, and a bit much for a home network. I
If you use Win2003 as your server, it will ask you what you want the machine to do, be it a file server, DNS, AD server....whatever. If you make it an AD machine, you will have to install DNS. It really all just depends on what you want this "server" machine to do. If all you want it a file server, Win2003 is a bit much, but it will work just fine none the less.
Have you thought about running linux on the server machine and using samba to see shares and move files?
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"You hear the one about the fella who died, went to the pearly gates? St. Peter let him in. Sees a guy in a suit making a closing argument. Says, "Who's that?" St. Peter says, "Oh, that's God. Thinks he's Denny Crane."
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