Question: What happens if some branches have Windows 2003 instead of
Windows 2003 R2 and can the main office be SBS2003 R2?
Answer: All of the sites have to use Windows 2003 R2. Windows 2003 pre-R2
Servers use a different DFS scheme that does not integrate into thr R2 DFS
Question: Where can I find more Information about differences between Windows 2003 R2 and SBS 2003 R2?
Question: Do all DC's need to be running W2k3 R2 OS or just those DC's or
Servers that are replicating?
Answer: Any machine that is a part of the DFS Replication scheme would have to be running R2.
Question: That means all DC's and DFS servers must be running W2k3 R2 OS.
Answer: You can find additional details on DFS - Requirements here ---
Question: is there a limit as to how much space you can use as the quota?
Answered: Limited to the free space available on the drive system used.
Question: What happens if the server which uses the staging folder fails? Can it fail over to a secondary staging folder on another server?
Answer: Each server has its own staging folder, if the server fails no replication will occur from that server until it comes back up.