Moving from P2P Windows to Standalone Mac Server

Hi all, I hope you can help me with a large problem. For the last 2 years we have been running up to 50 windows machines on a peer to peer network, we have now reached breaking point. After a bit of gentle persuasion, we have purchased the following.
A DP 800Mhz G4 Quicksilver
Unlimited Client Edition of Tiger Server 10.4.3
Here's the problem, how effective will this system | software be at pretending to be an active directory server (pdc)?
#1 I want to set up is windows users accounts with authentication to access files over the network.
#2 I would like to store all their files both on their machines and on the server.(Home Directories)
#3 At some point we would like to set up a VPN between two sites for file access.
I have used macs for a long time, but only in the sense of design and production. I understand networking and protocols well, but this is a bit daunting, any help on a beginners guide? How would you go about setting this up?
Thanks for your help.

There are two reasons for doing this.
A: Windows liscensing practices leave a lot to be desired, we are a small company with 40 employees, but we are expanding and hence need to look forward to having an expandable infrastructure - at the 'right' price.
B: The network currently consisits of mostly PC clients, but we are gradually changing over to macs - (A great deal of of work is graphics / web based).
I always used macs for everything and have never had any problems (no major ones at least), this seems to be the next logical step. The server software turned up yesterday, so it's all hands to battle stations.

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