A server may be a good solution if you want to control all network activity through 1 PC. All the settings are in one place and it makes the use of network resources (and their administration) much easier.
That being said, they're a PITA to get working right (In My Limited Opinion).
To me the main advantage is in being able to block/allow internet access as I see fit (beyond what the router offers). But there are tools that will do this much more easily on smaller networks. And, there are also tools that will let you administer the PC's remotely. Finally, it allow you to setup an effective security setup that users cannot monkey with.
My interest in setting up a network is mainly for the experience in doing it (I've got a PC slated for this purpose right now). But, in the beginning, expect lot's of problems as unforeseen little things crop up (not to mention the users complaining at you).
Edited by usasma, 04 December 2006 - 11:25 AM.
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