Can you Install WSSv3 and SQL 2005 Standard on the same server and setup Sharepoint as a Farm? Just wondering as we are running out of room on a lot of our servers and the new sharepoint server has loads of room, just a thought, i heard that this is not ideal, but when you are limited you need to make do.

Without problems, use a "complete" install instead of a stand alone (sql express) issues will be higher memory needed, and more hotfix potential headaches, but it's commonly done as a first step.

You can. I think this is good idea to install WSS in web farm configuration because in feature it will easy extendible. Just one suggestion do not use server name like SQL server name. Create DNS alias for that and you will not have any issues to move your SQL on separate server in feature. Oleg

Thank you Oleg, just one more question, i have just realised i dont have SQL 2005 64 bit, so i was thinking, if i install the 64 bit o/s and SQL 2008 Express, could i then migrate everything from our old sharepoint server to the new 64 bit server that has SQL 2008 Express? We have a small number of clients but this will grow in time of which i will upgrade later next year.