Migrating Exchange 2003 to Exchange 2003

Hi,

My current windows 2003 DC & exchange 2003 sits in a DIY server. Boss want to migrating the server to a higher performance hardware.

From the look of things, I have two choices. One is to backup AD and exchange store info and restore them in the hardware. Second is to join the second hardware to the domain and setup the exchange as second server. Then move all the mailboxes over. After that down the first hardware.

Anyone can help to give the pro & cons for each methods and what to look out for?

Thanks
Michael