Being a Domain Member should be good enough. The EULA doesn't allow you to use it as DC and depending on the configuration upgrading to a DC may be resticted. Here is a quote from the Documentation:
If you run SAPrep to lock down the server, to verify that the operating system is locked down, start Web Interface for Remote Administration, click the Help tab, and then click About Web User Interface for Windows Server Administration. If the lockdown was successful, one of the following lines will be displayed:
Microsoft(R) Windows(R) Server 2003, Appliance Edition (Build number)SR
Microsoft(R) Windows(R) Server 2003, Appliance Edition (Build number)ER
The R at the end of the line indicates that the operating system is now restricted.
Bezalel
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Posted July 14th, 2006 15:00