Windows Server Questions

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Australia
At work our current setup is we have 1 Main Server which is hosting our databases and runs Windows XP Home and then we have 6 other PC's.Now because of the Connection Limit of 5 PC's XP home isnt cutting it anymore,now im considering Windows XP pro but im wondering if Server '03 would be better!

So im wondering how does the licensing work with server? Could i simply buy this:

http://www.mwave.com.au/newAU/mwave...NNUBXISFKW3VHEFDH616R9ZBEG9RBWLI&sku=39090201

Install it on the server and be done with it? Or do i need a License for each user?
 
Windows Server is insanely expensive. Why not just go with Linux, or Solaris, or BSD?
 
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