I am wondering if there is any advantage to setup a Domain at my house, I would also like to know the disadvantage to do this to?
I am just self learning stuff on server 2008 and figured out that i can set it up as a domain server. and all of my computers have a domain capabilities. I just need to figure out how to set it up on the server.
Setting up an intranet domain is fine. Your server has to be a domain controller and that requires that you first configure a DNS service. Your DNS should use your ISP's DNS servers as forwarders if your computers will have access to both your server and the Internet.
Yeah, I already have a computer running 24/7 as a file server, and i would just add the Active directory to it.
Where would you suggest to put it on the network, right now I have it plugged in as a normal computer would be, with a router in between the internet and the rest of the network. Is that how it is normally done, or is the server directly to the internet and everything else goes through it.
It has to be connected on the same network as all other systems. Just leave it connected as is (I presume that it's connected to a switch or a router), add the DNS and the Active Directory roles and configure them. Before doing anything else, make sure that you use a static IP address. You can't use DHCP for a DNS/AD server.