Outlook 2007 on SBS 2003

I am just about ready to install SBS 2003 for the first time and was wondering if I have to install Outlook 2003 that comes with it.

As I understand Outlook does not get installed on the server just on the clients so can I skip 2003 and install 2007 on clients?

Will it work with exchange server?

I also use Business Contact Manager that links into Accounting Pro 2007.

Thanks for any insight.