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Can we use a Windows 2000 Server Machine to act as a router between two lans?
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Short answer is yes. Its done all the time in business.
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If yes then how, will be better if one provide a tutorial or a link to tutorial...
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To explain the highly technical methodolgies involved in LAN/WAN technologys would take more time than I am willing to spend.
Suffice it to say that, the Internet is your best bet on getting the information you desire. I would start at Microsoft's website.
www.microsoft.com