Single Server Domain upgrading from SBS2003 to 2012 Standard -- HELP!

Hi all,

I recently got approval to purchase Windows Server 2012 standardand 25 Cals for our Fire Department. Currently we are running SBS2003 on a single server with 20 Devices that connect back to it.

So, My 2 questions are -

1. How do I upgrade the server OS to 2012 but keep all the dataintact?
2. What will happen to the user desktops when they try to log back into the domain when 2012 is up? Will they get new profiles built out on the PC's?

My assumptions are -

•That I will need to copy the entire file share to anotherlocation and then reformat the server and install 2012.

•Unjoin all of the clients from the current domain and rejointhe newly created one.

Looking for any thoughts, steps, tips, suggestions... etc!

Thanks for reading!

T-Shirt Tom