Newbie: Admin account issues

I just installed a fresh copy of Leopard Server. After the install, I was faced with the "Administrator" account that I created during installation, and a "Local Administrator" account that I did not create.
What is the functional difference between these two?
Which one should I be using to update the server OS, create users, groups, sharepoints, etc.?

Well,
my initial reaction is that canyon-sized leaps of logic don't help anyone.
I think where many people get into difficulties (be it Mac OS X Server or just as much, MS Small Business Server), is they start out with unrealistic expectations,
perhaps don't read all the documentation, and/or when they do, gloss over server & network fundamentals that are absolutely vital to know and understand, prior to setting up any server(s).
I do think Apple did themselves and everyone a dis-service in the extent to which 10.5 Server was marketed as (suggesting that) not requiring a certain level of skill, knowledge and expertise - in working with servers and networks.
In fact, setting up and maintaining a server requires a significant amount of knowledge and know-how, a sizable skill set, and a willingness to both learn and work (maintain, troubleshoot, investigate) methodically.
To answer your question:
The "Administrator" account is an OpenDirectory admin account, for working with OpenDirectory
based accounts, whereas the "local" admin is just that - for working in the (server-) local directory.
Many of Apple's services in 10.5 (wiki, for example) require user (and group) accounts be "network" (ie: OD) accounts, in order for things to work correctly.
For updating the server, you can use the localadmin account.
For "create users, groups, sharepoints, etc.?" , depending on what you have in mind, you probably want to use the "Administrator" account.
The "directory" based accounts in this case will beOpen Directory accounts,
and OD is given an excellent introductory explanation here (note however that it's pre-10.5 but apart from the bit about NetInfo is still completely relevent):
http://www.mactech.com:16080/articles/mactech/Vol.22/22.10/2210MacInTheShell/ind ex.html
For more on that, see
http://www.apple.com/server/macosx/resources/
namely "Open Directory" under the Tech Briefs section,
as well as the "Open Directory Administration" , and other guides there.

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