You do not need (and in fact should not use) both NIC cards...unless you are planning to use ISA server along with SBS, in which case you WOULD want to have two NICs. If not, then disable one - the 10/100 card would be best since the gigabit card is faster - and only use one NIC in the server.
CASE #1 - No ISA Server: The router needs to have a local IP address; then it will automatically get a WAN IP address when it connects to whatever Internet connection is being supplied by your client (DSL, Cable or dial-up). You can do either of the following, it really doesn't matter:
1. Change your server IP address to 192.168.1.2 (instead of 192.168.16.2) so that it's on the same subnet as the router; OR
2. Change the router's IP address to 196.168.16.1 (instead of 192.168.1.1), again putting them both on the same subnet.
Whichever you do, the server and all of the workstations must then be set to use the router's IP address as the default gateway. The server's settings should ALWAYS be static. For the workstations, you can set the default gateway using the DHCP scope options - select the "router" option and set the IP address there, so that all clients will automatically get the correct setting.
CASE #2 - Using ISA Server: In this case you need both NICs. You could use two different subnets, although it's not necessary. If you want to use the two different subnets, then set the server's internal IP address (192.168.16.2) on the NIC card that will be used for internal network communications. DO NOT set a default gateway on this NIC card. Set the second NIC card (the one that is connected to the router) to an IP address of 192.168.1.2 with the default gateway of 192.168.1.1. Then all clients will use the server's internal IP - 192.168.16.1 - as the default gateway.
Hope this helps!