Upgrading Exchange and or the server

I'm looking for some general advise,
I have a customer with one server running MS SBS 2003, it has exchange V6.5 (build 7638.2 SP2), the server itself is a Proliant DL380 G5 with a 4 disk raid and Xeon CPU with 4Gb RAM.

The server is only really used for DC and Exchange as all company files and folders are kept on seperate network storage. 20 Users.

They would like to go to Exchange 2010, my question is in seperate parts,

1. can you just upgrade exchange 2003 to 2010 within an SBS enviroment?
2. would it be easier to just replace the server with a new SBS 2011 machine and OS?
3. can you just put a new exchange server on the network and migrate just the exchange from the old machine to the new?
InsideviewM.D.Asked:
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Elmar KoschkaSenior System EngineerCommented:
1. No, on SBS you only can upgrade to SBS 2008 incl. Exchange 2007.
2. No. easier is a upgrade to SBS 2008. A replace is nice for clean install.
3. Yes, you can migrate the Exchange on SBS to a other machine with Exchange 2010.
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DavidPresidentCommented:
Here is a how-to guide to migrate
http://www.msexchangegeek.com/2010/01/30/rapid-transition-guide-from-exchange-2003-to-exchange-2010/

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But really now, if this is all they want the system for, then personally I would recommend outsourcing it.   I outsourced exchange years ago and have 24x7 support, no headaches, no backups, no service patches, no hardware to buy, no software to buy, no support software/services to buy, no maintenance  .. and no paying consultants to reconstruct my database after MSFT decides to patch the system some Tuesday, and it messes something up.

Best $100/month I ever spent.
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