Small Business Server runs as a Domain Controller and has exchange sitting on it quite comfortably. However, people (including Microsoft themselves) usually reccommend keeping domain controller separate from everything else for security and stability reasons. Exchange integrates heavily with Active Directoy and if one goes down it affects the other. This is not desirable on a Domain Controller. Also restoring exchange which runs on your only domain controller is a pain in the @rse. Do it if you have to but be prepared to reinstall the whole thing if it goes down. That is essentially what we SBS users have to.
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