I am building a home Microsoft web server and MSSQL machine and am not sure which releases of the relevant available software to use. Price is the most important factor. Any suggestions ?

the best and most current Microsoft server product is Microsoft windows server 2003 it has all the features and more you require

If price is the big concern then I would recommend Windows 2000 Pro or XP using IIs instead of a Microsoft server package. I am running MS Windows 2000 Advanced Server. It will run form $250 to $1200 depending hat bell and whistles you get. You may get lucky and find a Corporate version for around $150 but they are rare these days.

If you truly want a server and SQL package look at Apachy and MySQL.

http://www.apache.org/

http://www.mysql.com/

http://www.squid-cache.org/

http://www.sendmail.org/

http://www.java-source.net/open-source/w...

In your case deploying your application on a windows 2003 web edition makes lots of sense.