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By a 2008 server Standard edition and put both of them on the network as Domain controllers for a domain controller cluster and sharing the services they provide. Since your 2003 server is a SBS machine it would have to be the FSMO role holder. SBS machines have to be the FSMO role holders. You can't have both at the same time. <br />
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But, consider having one machine as a standard OS so that you have a DC cluster. That's the one thing I don't like about SBS edition software. 
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Go with Govvy, this is a well documented and usually quite straight forward migration. I'm not really sure where ChiefIT is heading with his comment, but unless you have a specific LOB that requires the second server, I can't see where from your post a second server would be required?<br />
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To points to watch out for with SBS 2008, there is no ISA or Internet connection sharing. so you will need some other gateway/firewall solution. SBS 2008 is also a 64 bit platform, so there may be compatablity issues, typically with LOB applications or printer drivers.
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It's not a requirement, just nice to have in the event of a hardware failure of the SBS puter. It's nice to have clustered servers for that reason. 
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Old server is running exchange 2003, SQL 2005, Active Directory, and a couple other various softwares. &nbsp;It also acts as a file server. Any and all help is greatly appreciated. Thanks.
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Old server is running exchange 2003, SQL 2005, Active Directory, and a couple other various softwares.  It also acts as a file server. Any and all help is greatly appreciated. Thanks.

What would be the best process to upgrade from SBS 2003 to a new server running SBS 2008?

Small Business Server (SBS) is a line of server operating systems targeted at small businesses by bundling the operating system with a number of other Microsoft products that would normally need to be purchased or licensed separately. The most notable inclusions are Exchange, SQL Server, SharePoint and ISA/TMG (Microsoft's firewall and proxy server).

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).

Windows Server 2003

Windows Server 2008 and Windows Server 2008 R2, based on the Microsoft Vista codebase, is the last 32-bit server operating system released by Microsoft. It has a number of versions, including including Foundation, Standard, Enterprise, Datacenter, Web, HPC Server, Itanium and Storage; new features included server core installation and Hyper-V.