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Windows Server 2003 was based on Windows XP and was released in four editions: Web, Standard, Enterprise and Datacenter. It also had derivative versions for clusters, storage and Microsoft’s Small Business Server. Important upgrades included integrating Internet Information Services (IIS), improvements to Active Directory (AD) and Group Policy (GP), and the migration to Automated System Recovery (ASR).
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The only downside to adding them to the domain is that if something happens to go down, you will lose connectivity between the two sites and users will have to login with cached credentials.
Also, you would want to be careful of how you are storing files on the file server in the domain and on the XP server in the workgroup. If you use Folder Redirection for My Documents, then you may need a separate policy for the remote site so documents are stored on the XP machine instead.
-tigermatt