I wouldn't be too happy about upgrading my only DC but it can be done. You would first need to 'prepare' active directory but running adprep (from the 2nd CD if you have 2003 r2) then put CD and upgrade the OS.
Things to check would be;
Do you have enough free space on C: for 2003
How much RAM is in the machine (At least a gig for 2003)
Does 2003 support your hardware
There are probably more questions to be answered and if this is your only DC the risks are high as the upgrade could go wrong and splat your DC.
Do you have ecxhange on this network?? With only 20 users you could just rebuild the DC with 2003 with your new domain name and join clients to the new domain
Paul
MCSE 2003
"Two things are infinite: the universe and human stupidity; and I'm not sure about the the universe."
Albert Einstein
You could defintely, and I would recommend, practicing this first.
You could download a trial version of 2003 r2 from Microsoft's web site and use Virtual PC or vmware to practice installing it. Or if you have a spare machine you could install w2k3 on that for practice.
If you give me some more information about your network I could give you some rough steps that you would need to go through.
You said that you have 1 DC, do you have any other servers?
Do you have exchange on installed?
Any other software installed on the servers?
What OS is on the desktops?
Paul
MCSE 2003
"Two things are infinite: the universe and human stupidity; and I'm not sure about the the universe."
Albert Einstein
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