Hey'll
I have a server 2003 SBS configured (On it I noticed an exchange console ) which I believe is for the email setup on that server, is it possible to direct mail setup on a different PC.. making my configuration as follows: server connects to the internet, PC connects to the server & client computers get email from this PC dedicated for mail distribution.

At the moment all works well, only that I need to configure email for the clients.

Help appreciated

Exchange is a centralized email server as you have suspected. You can configure an Internet Mail Connector on your Exchange Server and you can also publish your SMTP Server via your ISA Server on SBS so that you can send email from your Exchange Server and also receive email to your Exchange Server from the Internet. If you have an upstream POP server, your SMTP Server can be configured to logon to your Smart Host so that it receives your email.

Alternatively, you may want to only configure your SMTP server for outbound Internet email and have each of your email clients logon directly to the POP server. This is less desirable because a POP server is a "store and forward" system whereas Exchange holds all of your emails in a centralized email database. The email is NOT stored on the individual PC's. You will find that collaboration is easier because Exchange centrally holds other information such as Calendaring and Tasks and makes it possible to schedule meetings and assign tasks directly from your own address book.

Since Exchange becomes your internal email system, you can set up your own email groups for distribution and Exchange ties directly into your Active Directory account information. The AD Schema is extended to hold the Exchange email properties for each of your users.