NO, Exchange been designed for domain environment.
Exchange System Management Tools are the tools or console required to manage the Exchange Server. They are normally installed on Exchange Server. But if we want to manage Exchange Server from Another Non-Exchange Server we can install them on that Machine. Permission required to install them are Users should be a Member of Domain Admins, Schema Admins and Enterprise Admins group. Can be installed from Exchange 2003 Setup CD : run setup and select custom and Microsoft Exchange System Management Tools.
The first DC in the domain.
Global Catalog, Normal Domain Controller, and Configuration Domain Controller
Forest: Schema Admin, Enterprise admin, schema admin, domain admin, local machine administrator
In general you don't want to do that because of the requirements of Exchange; it should be on a server by itself, not part of the domain controller. ----------------------------------------------------------- There are some major reasons behind not installing Exchange Server on Domain Controller, some of them are as below. 01. Redundancy and Stability: If both of these are running on the same system, it may reduce the performance and stability of server. If in any case Exchange Server services fails, the whole DC will fail, which may create critical problems. 02. Port Conflict: Domain Controller & Exchange Server both uses port 389 for LDAP queries, which creates conflict. 03. Disaster & Recovery: Disaster & Recovery can not be performed. 04. DSAccess: DSAccess, DSProxy and many other services will perform well. -----------------------------------------------------------
any group ar user who has domain admin rights can do it
from ask to administrator.
Global Catalog
Setup.com /PrepareLegacyExchangePermissions This command must be run under an account with Exchange Admins permissions and the domain must be able to communicate with all other domains in the forest while being run. Finally, you will need to wait for the permissions to replicate before continuing. The next command will prepare the schema, and this means the account you run this command from, must be a member of the Schema Admins group as well as the Exchange Admins group. Setup.com /PrepareSchema Setup.com /PrepareAD This command requires different permissions, depending on your current configuration. You need to run this with Enterprise Admin privileges, and if you have any Exchange 2003 servers within your current organization, you need to be a member of the Exchange Organization Administrators group. Again you will need to wait for the changes to replicate before proceeding. You can check for this by looking for the following new Security Groups in the root domain in an OU called Exchange Universal Security Groups (EUSG). Exchange Organization Administrators Exchange Recipient Administrators Exchange View-Only Administrators Exchange Servers Exchange2003 Interop The final step is optional and is only required to run if you have multiple domains within the forest. This command configures the other domain, or domains, in the forest. It does not need to be run on the domain that you run /PrepareAD in, but any additional domains will need this command run. You have three command line options with this command. Setup.com /PrepareDomain - Prepares the current domain Setup.com /PrepareDomain:FQDN of target domain to be prepped Setup.com /PrepareAllDomains - Prepares all domains in the forest.
Conflits with MAPI versions in Outlook and Exchange 2003, But solved in Exchange 2010
Domain functional level of all domains at Windows 2000 Server or higherDomain controller with Active Directory running Windows Server 2003Stand-alone server (with Windows 2003 Server, .Net Framework 2.0, CD drive)Microsoft Exchange Server 2007
kindly refer to the link http://www.commodore.ca/windows/exchange/how_to_setup_exchange_2007_in_2hours.htm