Answer - 1. Virtualization. (Windows Server 2008 introduces Hyper-V (V for Virtualization) but only on 64bit versions. More and more companies are seeing this as a way of reducing hardware costs by running several 'virtual' servers on one physical machine.) 2. Server Core (provides the minimum installation required to carry out a specific server role, such as for a DHCP, DNS or print server) 3. Better security. 4. Role-based installation. 5. Read Only Domain Controllers (RODC). 6. Enhanced terminal services. 7. Network Access Protection - Microsoft's system for ensuring that clients connecting to Server 2008 are patched, running a firewall and in compliance with corporate security policies. 8. PowerShell - Microsoft's command line shell and scripting language has proved popular with some server administrators. 9. IIS 7 . 10. Bitlocker - System drive encryption can be a sensible security measure for servers located in remote branch offices. >br> The main difference between 2003 and 2008 is Virtualization, management. 2008 has more in-build components and updated third party drivers. 11. Windows Aero.