I hope someone can help me with this problem.

I am fairly new to networking with Windows, and i need to know how i can get my network client machines to log onto accounts that are located on my network server.

I need to get the little drop down box on the logon screen to come up with the name of my server so that the users can log into their accounts that are located on that server.

I want to do this because my home network has grown quite large, and we want to centralize all our documents and settings on a shared network drive, so no matter which computer we use, they are all there. We currently use the server to print documents from (printer is attached to it) from any computer. I want to extend its use to logon too.

Currently, all computers (except one which is using Windows 98 ) are running Windows XP Pro or Home Editions - The "server" is running Windows XP Pro.

Do I need to upgrade to the stupidly expensive WinServer2003 to do this or can I still use XP Pro?

You need to set up users with permissions. Do you know how to set up a network drive?
http://www.microsoft.com/windowsxp/using/n...n/mapdrive.mspx

http://support.microsoft.com/kb/307800/en-us

To do what you're talking about (have a centralized directory of users) it would be best to "upgrade" to Windows Server 2003. It is also possible to to this with Linux + Samba, which would be a free solution, but more than likely cause you a lot of headaches if you've never worked with Linux before.
But in either situation you can't "upgrade." I'm pretty sure you would have to backup, format, and install. 98% sure there is no upgrade path from XP -> Server 2003.

Whichever way you go, what you would be doing is creating a Windows "domain" ("What is a Windows Domain?").

Hope this helps

Ben