It sounds like we have very similar situations. We had an NT domain on our LAN performing a variety of functions, and added the SME for internet stuff once broadband became available.
I made absolutely no changes on the NT4 server, other than reserving a block out of the DHCP range for PPTP connections (so that the PDC didn't assign an IP that was in use for PPTP).
The SME takes the specified number of PPTP clients (in Server Manager) and statically assigns that many IPs from the top of the DHCP range for PPTP connections. If you're using the PDC for DHCP, you'll need to set the SME to use the same DHCP range. The easiest way I found is to run the config and enable it, change the settings, then run config again and disable it. I set the SME to use the exact same range of IPs as the PDC, but you could do a subset of that as well. If you specify 192.168.1.100 through 192.168.1.199 with 10 PPTP connections, it will use 192.168.1.190-192.168.1.199 for PPTP (in which case you might as well just use 192.168.1.190-192.168.1.199 as the entire DHCP range). You'll want to reserve this out of the PDC's DHCP range, so it doesn't try to give those IPs to anything else.
You'll also want to specify the PDC to the SME if you're using it as a WINS server.
# /sbin/e-smith/db configuration setprop smb WINSServer 192.168.20.1
# /sbin/e-smith/expand-template /etc/smb.conf
# service smb restart
The PPTP client should now get an IP just like plugging another PC into the LAN. If you have the client specified to "logon to network" in the PPTP connection, it should give you a domain logon just like any other LAN PC would. Basically, the PDC shouldn't be able to tell the difference between LAN and PPTP clients...
This works on an NT4 domain. I assume it'd work exactly the same on a Win2k PDC. I think I recall reading that Active Directory requires other stuff, and won't work over the PPTP connection.