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Server upgrade options on a tight budget

I want to upgrade my current PII (PDC) sever. It has Exchange 5.5 and Faxination software installed on it. I am not sure what kind of server would be appropriate to purchase. What are my options without draining my pockets? I also do not have a BDC. Can the PII server be demoted or should I just retire it and purchase a server to be a BDC?
Contact a computer vendor you trust, then tell them your needs and budget. They can design a system for you. There are no universally correct answers to what computer to purchase.

If you are still running Windows NT, I would first suggest upgrading to 2000. But if you are sticking with NT, install the new system as a BDC then promote it to PDC, this will automatically demote the existing PDC to BDC. If you go to 2000, then there are no PDCs or BDCs but only peer DCs.

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