Lion Server on 27" iMac quad core...

Greetings...I have a quad core 27" iMac w/8gb of Ram & 1tb hard drive that I want to install Lion server on.  From other posts, I gather this is not really a problem...but I am wondering:
Can user could be logged into the Lion server and working in their home directory while other mac users are logged into the server on their macs?  At most there would only be 3 other users logged in at the same time on the iMac server...so it is not a big network.  Also...I only plan to use the server for file/sharing home directories.
If the answer to #1 above is "Yes"...when a user logs into their account on the iMac server...would they see the "Server" apps on their dock? 
Any...my goal is to have home directories on the server and users to log into the server and see their own home directoy/desk/etc from any mac on the network AND if they sign in on the imac server.
Any direction is appreciated.

You are going to deploy network accounts (Open Directory aka OD) with network home directories (OD+AFP).
Server.app application comes with MacOSX Server, so there will be no MacOSX Clients with this application in it (unless you copy it, or share through AFP or SMB, and i don't know if that will work...).
You can (and probably should) install the "Server Admin Tools" in your MacOSX Clients.
You can install MacOSX Server in a client machine, and have the Server.app in a client machine (with a server operative system).
I remember there was also "Network Applications" and "Network Library" implementations in OSX, but i've not seen any reference since years ago...
This last two implementation allowed you this: centralized applications, and centralized preferences (now that last is done in other way).

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