Server Upgrade from 2000 to 2008

I presently have a small LAN that consists of three Windows 2000 servers. The two Domain controllers are PCs running Celeron Processors, the third is a File Server (the only actual server of the three).

I want to upgrade the LAN to Windows 2008. I 'want' to get rid of the two PCs running Windows 2000 server all together and install a full version of Windows 2008 32-bit on the File Server.

Can a LAN with 8 users running Windows XP Pro have just one server? It would not be a small business server. Just the standard version of 2008.

Can this be done? I don't have a lot of experience designing 2008 LANs, so this is new ground I am breaking. I have loaded 2008 Standard on a test server numerous times in my test lab but it was not part of a production environment.

What are the drawbacks to having just a one server LAN?
RSchiererAsked:
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bpinningCommented:
There is nothing wrong with only one server for 8 users,

Most businesses I look after have one SBS server for upto 50 users
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Lee W, MVPTechnology and Business Process AdvisorCommented:
Once system can easily support 8 users in almost all environments (I seriously doubt you'd be asking this question if you were one of the exceptions).  

The drawbacks are primarily in the area of redundancy - which, depending on how heavily you use the systems, may not be significant enough to warrant additional servers.

My only recommendation is to NOT go to 2008 - go to 2008 R2.  R2 is 64 bit only and because it's a newer system will be supported longer (as you seem to keep systems a bit past their reasonable expected life span).
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RSchiererAuthor Commented:
As noted in the question, we are NOT talking about a SBS. It is just one stand alone server that I want to run 2008 on. The other thing is that the server is not a 64-bit server. Thanks for the responses though.
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Lee W, MVPTechnology and Business Process AdvisorCommented:
If it's not a 64 bit server, then it's an OLD physical server.  You know your company, but from my perspective, servers are CRUCIAL to the business.  A workstation fails, who cares - go to a local store and buy one for $300.  The server fails and all your employees are sitting there twidling their thumbs (at least most of the time).  Servers should always be under a 24x7 warranty with 4 hour response.  Servers that do not do anything critical can be old server - for example, make your old server a spare DC/DNS server, that's fine - even a replication partner using DFSR - to a new server and it's good JUST IN CASE.  

Anyway, my opinion - and again, you know your business and how important the systems are to you.  It doesn't make sense to put yourself in a position to lose $25,000 in revenue if you could spend $2000 for a server with up-to-date hardware and warranty.  Warranties are insurance.  Redundancy is insurance.  You hope you NEVER need it... but depending on what your business does, it may be crucial to have and you may not realize it until the fan gets dirty.
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