Hi,
Using SME 6 would be ideal for you situration, if you was to add this machine on your switch with this as you domain, you would be able to connect with you XP machine for everyday things and collect email (providing you set it up right)
Also you can host sites for your friends using virtual hosts.
If in doubt post your questions on here if you come to install SME, this is a friendly forum and most questions get anwsered.
HTH
Byte