Can Exchange 2007 be used soley for an email server (also allowing web email access)?

I am developing a website for an organization that has roughly 1500 users with 70-100 users hitting the site a day.  They want their server to be able to serve their website and email. Can Exchange 2007 be used solely for an email server (also allowing web email access)?  If so, do I still need to worry about setting up an active directory and settings such as DHCP?

Server Hardware:
RAID 1: 2 146GB Drives (the OS is installed on a NTFS formatted partition with only 11.77GB, I need to extend this which is going to be another thread)
RAID 5: 4 146GB Drives

Server Software:
MS Server 2003 R2
Exchange 2007
SQL Server 2005
IIS 6.0

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Exchange needs to be in a domain, but there is nothing stopping you from making the Exchange server a domain controller (although, it is not recommended).

What functionality do you want from exchange?
lanabutanaAuthor Commented:
As of now, we need Exchange to just act as the email server and provide web access to their email.

( there are 2 purposes for this server: to serve website and email if possible)
Got it.

For web access to email then yes, you will need Exchange (I was thinking of just using POP and SMTP within windows)
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lanabutanaAuthor Commented:
Should I install the active directory and database on RAID1 on the same drive and partition?
I would split the 146GB RAID1 array you have into the following partitions;

40 - system and AD
40 - Exchange and transaction logs
40 - SQL and it's logs
20 - Page file

Then the RAID5 depending on your database sizes;

X - Exchange

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lanabutanaAuthor Commented:
Ok. Great!
Just one more quick question.  What is Page File for?
Page file is the space used by the OS as additional memory, for the best performance, put your psgr file on a different partition than your OS, infact create a smalled size partition only for your pagefile, preferrebly a raid 5 volume.
As for exchange, you absolutely need active directory. Anyways have you considered using third party email solutions? mailEnable pro is a great solution and is less expensive than exchange.
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