I've been using my server as a router for a while. Switching between Server 2008 and XP a few times, being unable to decide which of them best suits my need.
I can basically achieve the same functionality with XP as Server 2008. (NAT, DNS). To activate it on XP, I just type;
netsh routing ip nat install
netsh routing ip nat add interface "My Dsl modem" full
netsh routing ip nat add interface "Local Area Connection" private
netsh routing ip dnsproxy install
And then I set my LAN clients to static IP's. The only problem was to route certain traffic to my clients, like the PS3 which needs a few ports for online play. I tried to make a batch script to open the ports. I made it half way, opening some ports on my server but I couldn't find the syntax (if it's even possible through netsh) to route the port to a NAT client.
firewall add portopening TCP [port] [rule_name]
My point is, I'm sick of this, a custom homebrew router should be linux based. I am ordering a D-Link Xtreme N™ Gigabit Router (DIR-655) today! It will fit perfect with my PS3 and I will configure it once no matter how many times I wipe my server OS.