One more point, I will be running the 32bit version of Windows Server 2003 and so should I consider using a server with an "Intel® Pentium®D Processor 840 at 3.2GHz" instead of using a Xeon processor? Unless The Xeon processor would run the 32bit Windows 2003 server faster than the Pentium.

Appreciate your input.

If you have 64 bit processors, then run the 64 bit software. Any other 32 bit programs hould run just fine under 64 bit, but not as fast as if they were 64 bit programs.