No I dont think so
I have windows xp pro clients that get there ip via sme server joining the domain no problem, I could not advise you for win 9x systems though but I doupt if there would be many people using something like win98 at this stage.
At home I was using roaming profiles that works great when all the pc's have exactly the same software installed.
I have not tried vista yet or windows 7
I have played with various systems over the years, Clarkconnect, ebox ubuntu etc but for an out of the box set up and go it has to be sme server.
It would be nice to see some extras like sysmon etc as a base install but overall its very good.
As far as I remember a wins server is something windows 95 and 98 required but I dont think XP requires it