Installing windows server standard 2008 32bit in IBM System X-3620

SBS2008 locks you into a special version of SQL2005 that runs the WSUS database, Sharepoint, and the SBS specific database (keeps track of users, alerts, etc). It works just fine. With SBS 2008 premium you get the extra 2k8 license with a license of SQL (i think you can choose 2008 or 2005) to run your line of business app (if any) and these other databases. if you have a big enough machine, there is no reason to get premium- you'll run into 75 user limit on standard before you run into any database performance problems. you can always move the databases to dedicated disks if you want, on standard.

i don't think sharepoint 3 is compatible with SQL 2000.

If you have ILO or similar, you should be able to attach a CD/DVD ROM remotely (works great btw)

What OS was on the drive?

This page: http://support.microsoft.com/kb/931697/en-us

Suggests formatting will help, else, there is a registry change that may help. (for vista, but they haven't changed much)