I've done it! How-to to follow as soon as I can remember the steps to get to the finished product...
In brief, I:
1) Installed NIS using the how-to found on this site.
2) installed "e-smith-nfs" rpm
3) Edited the /etc/exports file to export the /home/e-smith/files/users directory. Note that this is where the home directories are defined in the server's /etc/passwd file, this is important later
4) Installed the 'e-smith-usershellaccess' rpm. This may be a security issue since it gives shell access to the server... allow shell access to the users through the server manager page.
5) Setup the Xandros OC edition workstation (based on Debian Sarge for reference purposes) to use NIS authentication
6) As root, edit /etc/fstab to mount the server's exported filesystem in, and this is important,
/home/e-smith/files/users - create this path manually if neccesary.
7) All good! Obviously there's missed steps here, but I'll wipe my Xandros install at some point and try and recreate it logically, writing down as I go. The SME server is running my house right now, so I can't wipe that.
But, since this works, and Xandros is similar enough to Windoze to fool most of the people most of the time, there is the possibility to save some serious cash... at my work we have a proposed network of 15 PC's, so we save ($150X15 for workstation +$1500 for server + too much for the MCP dickhead to install it =) over $5000... plus have that warm fuzzy feeling that we're sticking it to Bill.