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I have nt4 bdc used as file server, and the server is about to go back to the vendor(leased). We will build a new 2003 server as a member server in nt4 domain. (In the future we will move to AD). If I use the MS free tool to move data to the new server, is there anything I am missing? I am confused about the group aspect, as BDC does not have local group but has domain local group.
You will only run into problems if you use domain local groups to define permissions on the files and shares on the BDC. You would need to recreate these local users or groups on the file server and then migrate them. Using the ADMT should allow you to perform such translations. Alternatively (and possibly a more simple solution), SubinAcl from the Windows 2003 resource kit would substitute permissions and group names for you.