DNS and WINS together on W2K Server

Hi All,

I have around 100 pcs and around 20 are Windows 98 and the others are windows 2000. I have a W2K server running DNS and DHCP. However when i entered this network they had an old NT 4.0 Server running WINS.
This server broke down and i took it out of the equation because it was causing more problems then it was solving.
However, I am now operating without a WINS server with clients using only NETBIOS to resolve names.
My question is, Why didn’t they have the WINS server setup on the Windows 2000 Server?
I have not setup a WINS server before so I was wondering, will it cause problems having WINS and DNS on the same server and why?
Will it slows things down and why?
Is it better to keep it on a seperate server and if so why?

Thankyou