I have used Linux on several jobs with Windows machines as clients. As a file server (Samba), as a PDC/WINS server (Samba), as a print server (Samba), as a proxy server (Squid), as a SQL database server (PostgreSQL, Sybase, MySQL), and much more. The nice thing is in addition to doing the above things, it can act as a Network Monitor (Big Brother), an intrusion detection system (Snort/ACID), etc etc, all for free.
Regarding the setup and your question about FAT32. It doesn't matter what file system you use on the server. Samba does SMB/CIFS just as if it was an NT server. In fact if you have your kernel configured to include file system ACLs then you can even set NT file permissions by right clicking files on a share from an NT client just as if the server was really NT using NTFS. winbind allows you to set user/domain level permissions based on your NT domain.
Samba can be configured to act as 1 of 4 types of Windows server. It can be an NT Domain Controller, an NT Domain Member, a Workgroup Server, or Share Level (like Win95). 90% of the time I set them up as Domain Member servers to take part in an existing domain with existing MS NT Domain controllers.
Depending on the size of the job I may be interested. I might just send you an email. It's not a bad drive for me to get to K.C.
[ May 07, 2002: Message edited by: VoidMain ]