basically W2K is not bad at all, depends on what you want to do with it. For basic services and small LAN W2K can be absolutely fine, but some hardware upgrade maybe required.
Now that I've noticed : compatibility with W2K may be painful issue. You have to check first if legacy applications would run properly in W2K environment.
W2K server can also authenticate workstations with NWClient installed. So you don't have to set pure W2K network.