No reason not to set it up on an existing NT server, unless you are hiding certain facts, like maybe the server box has spent a few days in a pond, or perhaps has an ant colony warming its larvae under the motherboard. If the system has had a history of flakiness, avoid it, otherwise bring it up to the latest service pack and start installing, as long as there is adequate processing power and disk space for the number of users you will be handling.
Run it on the same server, does Microsoft really need to sell more licenses? As ShackDaddy stated, as long as the resources are there, install it there. Otherwise, if you have a better system you were putting it on, why not move everything there? That way, if everything does blow up, the other system is still ready to go with little or no downtime.
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