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Server 2008 R2 moving Active Directory & Domain Controller

I have a single server network with MS Server 2008 R2.  I will be replacing the server with a new MS Server 2008 R2 and I have 12 XP Pro workstations.  I will be taking the old server out of service.  This means I will need to either create a new Active Directory and Domain Controller on the new server or do some kind of DC Promo process.  What I want to avoid is having to reattach each XP workstation to the domain and having to recreate a new desktop.  What would be the best way to accomplish this task?  Very detailed steps would be greatly appreciated.

The second part of this question is if I just start from scratch on the new server and create active directory and domain controller with the same domain name, and server name would the 12 XP Pro workstations connect to the domain without creating a new desktop?

Thanks,
Lew
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The only reason I would create a new domain is if you want to rename it (its cleaner) or you have AD corruption. Adding a second DC and migrating to the new DC to get rid of the old is the best and cleanest way.
Of course if you have Exchange or SharePoint or other apps, it is far more difficult that we have listed here.
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Hi Guys - Thanks for your very useful info.  One bit of clarification please.  

If I do the following:  Best way - install 2nd server, run DCPromo on new server - transfer roles from old server, migrate all of your apps including exchange sharepoint or whatever else you have. Run DCpromo on old server, remove from domain - done.  (No SharePoint & No Exchange).  Will I have to re-attach my XP Pro workstations and create a new desktop?
I am very appreciative of your help!
Lew
No you will not have to re-attach your XP systems. As long as the new server has all the roles before you dump the old server the clients won't even know a change was made. Make sure your DNs is setup and running well on the new server as well.
If it is the same domain, you will not need to reattach. If you create a new domain from scratch, yes you will have to reattach and it will not be a great experience for your end users.
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All information you provided was extremely useful and will save me a bunch of time and pain.  Thanks to all!  Lew