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I downloaded the ISO from MSDN and extracted to a single layer DVD which contained all the editions. Upon booting from disk I selected the Windows 2008 Standard 32bit install with Server Core option. This will install basically a command prompt only, and quickly found difficulty adding any feature, so abandoned quickly and went to the full install which still gives you a base install set, but not many features enabled.

Since it was MSDN copy and my Domain doesn't have a Key Management System installed, the server couldn't validate my install and had to follow this KB929826 which just has you run in an elevated permissions cmd window:

slmgr -ipk  xxxxx-xxxxx-xxxxx-xxxxx-xxxxx

To launch an elevated command prompt, simply press the Win key; type cmd in the search box; press Ctrl+Shift+Enter; and then hit Alt+C to confirm the elevation prompt.

A good resource on setup I have been using is http://www.win2008workstation.com/wordpress/ 

First thing I did was turn off the IE Security protection so I could use websites. Under Server Manager, the Server Summary page has a Security section, find link on right to Configure IE ESC; turn it off if you running for a desktop machine. It is good to leave it on for a real server.

If you want to run Server Core install, here are a few tips:
Follow instructions on MSDN page for Server Core Installation.

There is a little error on adding a user to a domain via this command (Missing last D):

netdom join <ComputerName> /domain:<DomainName> /userd:<UserName>
/passwordD:*

A cool gui setup utility if you are afraid of reading or dislike the command line.