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I will be building a new server with two hyper-threaded Xeon processors. Will this require Windows Advanced Server?
No, Windows 2000 Server and Windows Server 2003 both support up to four CPUs right out of the box. If you needed eight CPUs, then you would need to get Advanced Server. I don't think either 2000 or 2003 will take advantage of hyper-threading. Plus, if you are pursuing a 64-bit processor, you'll need to get the 64-bit versions of the OS.