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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.
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http://technet.microsoft.com/en-us/library/cc771347(v=ws.10).aspx
You are right, NPS is where the Policies are configured and the RADIUS act's as the central authentication server if configured that way (it doesn't have to be configured as a central auth server).