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Optimal configuration for Windows 2003 server

I have been contracted to create a domain for a small non-profit organization using windows 2003 server standard edition.  beside the main location (HQ) there are four remote sites that all would need to access data on the server.

1. I have purchased the following equipment for the job:
WD WorldBook Edition II (1 TB) with remote file access for the remote offices so that i could avoid creating a vpn and placing a load on the server.  
2. I have a 24 port switch "mostly for the 18 users in HQ
3. 4 port Linksys VPN router X 5 "1 for each location
4. High bandwidth DSL

My question is this as I am predominantly a Linux enthusiast, once I have installed the server OS which of the mini servers should I install? Based on my understanding, I was only going to install and configure:
File & Printer server
Application server
Domain Server (active directory)
Terminal Server

I know for a fact that I will not need the  Web server, DHCP server.

I am not certain about the DNS server

What configuration would be optimal to allow in performance while allowing access to remote users?

Oh yea the server is a Dell SC 420, 1 GB Ram, Raid 1 70 GB HDD, dual 1 gig nics






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globaltekit

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Team you responses definitely give me good reason to re-think my strategy.
First the client is a non profit organization and has already purchased Win2003 server standard edition, so I don't have a choice on the OS.
Second, I was going to use the router to provide the DHCP services needed as appose to installing and configuring DHCP server. "What do you think?"

Third, I have setup Active Directory before and did not install DNS for 15 users. I added all of the users to AD as well as their computers and was able to successfully add them to the domain without the DNS server. I listed the server IP address as the first DNS server for all of the clients and listed the ISP's DNS as the second DNS and then added the server IP in the WINS. I was going to reuse this strategy, but based on your responses, it seems that that was not a suitable nor robust solution. "If I install the DNS would you suggest setting up both Forward and Reverse lookup?

"Do you think that I should go back to the previous client and install DNS server as this may be the reason why some of the clients are getting kicked off of and/or losing their mapped network connection to the server. ?"

Fourth, The client is contemplating on installing thin clients in 2 of the four site, it this is the case, I will need to install terminal services and file & print. "Do you agree?"

Fifth, the client has a set budget and can not afford to purchase another server specifically for TS. " what other alternatives do you suggest?"

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Team thank you for you comments as they have been very helpful to me.

The client had win 2003 server previously installed but the system crashed, this is why they asked me to rebuild it along with the newly purchased hardware. They are limited in funds and may not be able to purchase additional hardware and due to timing constraints, I am not sure it they can return the Win 2003 server after having used it for at least six months to a year

The server was purchased 2 years ago so they are stuck with it and it only has a 2 gig or ram limit, which I have already advised them to max out

As for the thin client, it is for a lab environment for junvenille hall residents just for internet and basic computer use. I will a different machine just for this purpose and not burden the server. I was really trying to get the client to go with Linux thin clients as they are very inexpensive to maintain

WIZARD, I plan on returning to the previous client and installing the DNS server, but you indicated that the Fordward lookup zone will be created automatically. I thought after the DNS was installed that you had to actually configure the DNS by created the Fordward lookup zone. Is this correct?
 Also, will it harm the environment adding the DNS after the fact?

As for learning more about active directory, I have been reading/referencing windows server 2003 published by microsoft press. please tell me where i go to get better resource/reading materials on how to setup active directory correctly
I'd recommend a 3-way split if the OP doesn't close it.