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Experienced Windows 2008 Upgrade Consultant
There's a good chance, depending on the availability of software drivers for your existing hardware, but unless your existing server is less than 3 years old it's not a good idea. Although Windows Server 2003 will install on a 133mHz Pentium PC with 128mb of RAM it will perform poorly and not be capable of running the multitude of server services and programs you'll need it to. Upgrading to Windows 2003 on a new server means you're likely to go a further 3 years without any hardware failures. A 2gHz CPU and 512mb of RAM will give excellent performance.
Also, by leaving your NT server operational during the upgrade is safer as you can abort the upgrade and start again if something goes wrong. After the upgrade the NT server can continue to operate as a Backup Domain Controller and provide other useful functions.
If you do decide to upgrade a 3-year-old server I strongly recommend that, to boost the server's reliability, you also:-
Replace the hard drive with a new larger one
Ensure the server has at least 512Mbytes of RAM
Replace all the fans or at least lubricate them
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