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What are implications of demoting Server 2003 from domain controller to standalone?

I would like to demote a 2003 standard server from a dc to a standalone.  At present this server only has two workstations connected to it.  I think active directory is overkill for us.  I have two nics, and want to keep the network configuration/internet access I am presently using.  What problems can I expect if I attempt this.  Please remember I am definitely a novice with Server 2003.
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t6bill
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t6bill
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LauraEHunterMVPCommented:
If this is your only domain controller, then demoting it will remove your AD domain entirely.  This means that your workstations will need to be joined to a workgroup since the domain no longer exists, and any files/folders/shares that have been secured using domain accounts will need to be secured using local accounts on the individual file servers - you will need to create local accounts for your users on each server containing files/folders that they need to access.
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t6billAuthor Commented:
Will any files on the workstations be affected?  
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LauraEHunterMVPCommented:
If there are shared files on any workstations that have been secured by domain accounts, you will need to re-do the permissions on these folders so that they are secured by local accounts.  You will also need to drop your workstations from the now-nonexistent domain and join them to a workgroup.
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t6billAuthor Commented:
How do I drop the workstations from the non-existent domain?  
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LauraEHunterMVPCommented:
My Computer-->Properties-->Network Identification tab.

Keep in mind that you'll need to create a local account on each workstation prior to disjoining it from the domain, or else the user will not be able to log on.
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