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Is it ok for SQL Server 2008 Express to run on a shared file server or should it have a dedicated server?

Is it ok for SQL Server 2008 Express to run on a shared file server or should it have a dedicated server?  If it should be dedicated, what specs do you recommend for the hardware?  We run a small docketing database with Access 07 front ends that has about 20 users updating at one time and up to 40 with view/reporting rights.  
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