To quote pfloor,
Does that and a whole lot more.
Be sure to read the last part of this manual page.
http://wiki.contribs.org/SME_Server:Documentation:Administration_Manual:Chapter13#WorkgroupThen get on the answer machine (otherwise known as google) and look for the basic networking articles on windows domains and netologon.bat.
I would make this comment that with only 3 users I would probably set it up as a peer-to-peer network with shares mapped by the clients rather then go to the work of setting up a domain.
I would also make a comment on Novell,
If you have only used it as a user and think all that drive mapping stuff just happens, you might want to talk to whoever is your Novell admin. The login script on my Novell servers is about 4 pages long and mine is relatively simple.
With as simple as your network sounds on the surface I would never fork over the cash for Novell as SME is simpler to use and the "client" is built right into Window already.
I would definitly find some old machine and install SME, or do it in a virtual machine, then play with it with your workstation using the programs you plan to use and the files you plan to share. Make sure it is working and you can at least answer basic user questions before you implement it with the users.
If you decide to do Novell, I would recommend the same procedure.