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The router is a netgear wireless router
I want the computers that connect to the domain to have to go threw the server
DNS and DHCP ( ISP or Set on server ????)

Im using virtual pc for win 2003 server

OK – hook up your netgear wifi router to the 2003 server machine.

Because your 2003 machine is a server, you'll need a static IP for it, so I would connect the router to another network card and have another separate card for the LAN. You can then bridge the two cards on the server and allow them to route traffic. This way your server keeps it's static IP address for the LAN but gets it's dynamic IP from the router for the internet access.

Set the DHCP server on the 2003 machine to give your XP clients an IP address from the non-routable 192.168.x.x range (excluding the router).

Then set the XP machines to route through the ip address of the server rather than the wifi machine. Basically you're using the wifi router as a normal networked router.

A friend and I work on computers as a hobby and it’s a hassle and expensive to keep burning cds with the stuff we need. We want to be able to log into the server download and upload files we need. Is there a set of software I can use to build a file server accessible from remote locations? If possible I would like something web browser friendly and not a hassle to setup and maintain. Windows based server is preferred but not essential.

It sounds like you want FTP software. I'm sure you'll find some on the web.