Software

Do you have active directory installed if yes then you better install exchange on Domain Controller if not then you can install Exchange on and member of Domain controller but you need to do slight preparations that is first you need to run forest prep on Domain controller then you need to run Domain prep on Member server where your installing exchange to integrate your Active Directory with your exchange server then run normal installation program of exchange and follow the instructions.
thanks and best of luck

I do have AD installed on my DC, but not on the new server. Should i install AD on the new server?

You don?t have to setup exchange in a child domain. The server you?re installing exchange on doesn?t have to be a domain controller but has to be joined to your AD.
Login with an administrator account that is member of the enterprise adminstrators and schema adminstrators group.
From the exchange 2003 cd run the following command:
drive:\setup\i386\setup /forestprep

after that run the following command:

drive:\setup\i386\setup /domainprep

After you have done this you should be able to run setup on the exchange cd.

The new server does not have to be a domain controller. You need to join the new server to the domain.
1. Open System control panel
2. Click on Computer name
3. Click Change
4. Select Domain
5. Enter domain fqdn
6. Enter user and password for a/c with at least Account Operator rights