exchange server

Hello

I am looking for some advice. I want to rollout maybe microsoft small business server for email/exchange only. I have at present a windows 2000 AD domain. Obviously the server will be windows sbs 2003 premiem edition will i be able to add this server to the domain as a member server or will i have to raise the fuctional level of the domain controller first.

Bearing in mind that this is a mail server, if i add the server to the network but not to the domain i.e if i set the sbs server up in its own workgroup as opposed to being a member server on the domain, if i do this will it still be able to communicate with the active dir.

I hope you can understand this.

Thanks in advance.