Migration from Windows Server 2003 SBS to full Windows Server 2003 R2 & Exchange 2007

My company has a single server running Windows Server 2003 for Small Business Server SP2 (not R2).  This is a domain controller and exchange 2003 server.  We want to upgrade to full windows and have bought 2 second hand servers running  Windows Server 2003 R2 (32-bit) and Windows Server 2003 R2 (64-bit).  Servers have windows licenses, windows CALS, exchange2007 license and exchange CALS.

My plan is to
-      Add the new servers to the domain
-      Move domain controller roles to the 32-bit machine
-      Install exchange 2007 on the 64-bit machine.
-      Migrate users mailboxes to the exchange 2007 server.
-      Decommission the SBS server.

Will this work?  Do I need to buy a 2003 SBS transition pack?
Do I need to upgrade the domain schema from SBS to full windows server 2003?
Will I need to recreate user profiles on my XP and Win7 clients when user accounts move to the new domain controller?
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Cris HannaCommented:
I'd be curious to know why you're moving away from SBS?   and if you are going to all this time and expense, why not go with the latest version of everything?

The SBS 2003 Transition pack is no longer available

Since you're not creating a new domain, profiles should remain intact.
Peter_CullAuthor Commented:
Our current server is unreliable and has run out of disk space.  We got the second hand servers for nothing including server licenses and CALS.  I'd love to upgrade to server 2008 but it would cost £1000 plus the cost of Windows 2008 CALS.

Are you saying we can move the domain controller role from an SBS server to a Windows Server 2003 R2 machine?  Surely it isn't as simple as running DCPROMO on the server 2003 R2 machine then removing domain controller role from SBS (if that's even possible)?  Is there a migration tool to move the DC role?
Please taka a look at first part of this article:
and this one:

Yes, your plan should work.
You don't need transition pack. Anyway it is not available to buy anymore.
On sbs 2003 both domain and functional level is set to 2000 mixed. You will need to rise thatat least to 2000 native. Here you have supported levels by different versions of exchange servers :
If you will join the new servers to existing domain and move the FSMO roles to them, then you will not need to recreate/copy profiles as user and domain remains the same.

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I'm afraid it is simple like that. Look at my first posted link - it covers that part.
If you have the possibility to get an SBS2008 Install Source you can make the first Steps to migrate to SBS2008 to join a new domain controller to your SBS2003 Domain an then start to join the new domain controller to your old domain. Read the migration white paper from ms before start.

After you have join the new DC check replication an than you can start to migrate Exchange and user. Normally your user profiles do not to be recreated.

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