Question : Problem: Should I have SCCM2007 and Active directory run from same box??

Hi Experts
I am pretty much close to deploy Active Directory and System Configuration Manager 2007 in this summer for our campus. We have classrooms with pcs and we need to monitor, update and administer them efficiently. I did ask a question previous in this forum and many experts advised SCCM 2007 as a solution. I also did some reasearch and finally the project is approved and I am getting a new server. My concerns is right now due to tight budget I am getting only one Dell server and I am going to set up AD, SCCM and SQL server ( for backend) on the same box. Since some of you already got some experience with this technology may be you may advise is it ok or not? I know SCCM server  has to be memebr of domain but if they run from same machine how much performance issue it may create? The server OS is 2003 std.thanks in advance.

Answer : Problem: Should I have SCCM2007 and Active directory run from same box??

you can virtualize SCCM on MS Virtual Server 2005. I have not installed SCCM on Windows Virutal Server 2005, but SCCM works in Windows Server 2003 OS and when you create a VM for SCCM, you will VM it as Windows Server 2003 and SCCM install on this OS, so there shouldn't be any problem.
I have installed SQL2005 even clustered in a VM with Win2k3 on Win Virutal Server 2005. So, you should be able to put both SCCM and SQL in the same VM. Your option 2 would be more appropriate.
Yes, you can also use your Web server to host another VM for a second DC, that would make your solution more reliable and will provide more options when comes to maintainance and upgrade etc.