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Swapping out an old Windows 2003 Server with new one

I would like to retire an old server and replace it with a new one.  My question is what is the best way to do that?  The server in question is the second serverin a two server domain.  The primary server is a SBS 2003 and is the PDC.  Can I just backup the data and system state and restore that information back onto the new server or do I need to go through the promotion process?
Thanks for the help.
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Lee W, MVP
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So after I join the domian with the new server I do DCPROMO with the old?
IF you want to make it a domain controller, yes.  Then you DCPROMO down the 2nd server and remove it.
What is the proccess of removing the second server with out makeing its replacement the Domain Controller