to windows 7 or not

Clarifications

[i]Is Windows Server 2003 with Windows 7 Pro a viable ugrade option?[/i]

Of course it is when asked in isolation with no reference to anything that they may be running.

However here weather or not it's a Viable option all depends on what is in use and what Software/Hardware is available.

Is there any Specialized Hardware or Software that is not compatible with 7?

Have you tested the current system with the Windows 7 Upgrade Adviser?

http://www.microsoft.com/downloads/en/details.aspx?FamilyID=1b544e90-7659-4bd9-9e51-2497c146af15

Just remember that the Upgrade Adviser doesn't really apply to 64 Bit OS's just 32 Bit so if it passes the Upgrade Adviser and you need to use a 64 Bit OS some hardware and software may not be compatible with the 64 Bit System. Scanners and Web Cams are the most obvious Hardware as they don't have suitable drivers but really it could be anything. ;)

Col

Seeing that you mentioned they have pirated versions of Windows XP, I would assume that the cost of a Windows Server 2003/2008 license with enough seats to take care of the 35 (and probably more in the future) computers and the Windows 7 licenses, not to mention the hardware that needs to be purchased, would not be a viable solution to your client.

I've worked in places where they expect The World for free. They do not want to spend money.

If you can persuade them to upgrade to your specification, then you should have a nicely working system on your hands, but squeezing the money out of those kinds of clients is difficult.

I wish you all the luck I can grasp!

In answer to your question it all comes down to what you are using the lab for and how much they have to spend?
I have seen a good few set ups where clients have just used XP workstations for sharing files and printers, although this works well if its as big as 35 computers id suggest putting in a server.

Creating a small network environment, 1 server and the lab computers would be a good option because it makes it alot easier to manage and share printers as well as documents.
As for Windows 7, Im working with more than 50 Win 7 pc's on a network and they run like a dream!

Cheers