dkiser wrote:
1. Any recommendations on which Linux OS to install?
There is a component of Linux that is its weak part, and it is the desktop environment. I think you can choose freely among the various distributions according to many parameters (one that I value is ease of software update, for which Ubuntu is really great), but be very careful as to what desktop environment you choose. I experience freezes with both KDE and Gnome, as well as Unity, and Ubuntu has the very bad habit of changing completely your desktop environment or some of its settings when it sees fit. This is not acceptable for a professional workstation where you are not willing to discover new ways to do old things (e.g., see what programs are running, switch from one to another, start a program) every 6 months.
I had a brief experience with xfce on an old laptop, and it was the most stable desktop I tried. But the test was not thorough enough. Too short, only some hours of work.
Keep also in mind that on Linux (where "everything is a file") I had a program mistake a directory name with a file name, only because I left out the trailing slash; it overwrote a whole directory with the file I was saving. This is the application's fault, but it is the Linux filesystem model that made it possible. Be careful.
dkiser wrote:
2. I want to create a network server to house data from my other PC's, would I use the same box or should I have a separate PC for a network server? If a separate OS version, do you have any recommendations.
This depends on the intensity of use of the server. A file repository for occasional use could be hosted on your main machine; however, if you are not a fan of spinning hard disks, if you anticipate varied and intense requests to the server, at least separate storage is advisable. Separate storage is also a (partial) guard against data losses.
A separate machine could be an additional source of costs, troubles, and power consumption, but also the safest and most effective solution.
At work (university, which means low budget) we have a small server farm with individual virtual machines for file servers, websites for research and teaching, and project servers (e.g. document repositories, CVS). Virtual machines can be an effective solution and help you keep things tidy, either for sharing your single machine's resources or for organizing a separate server. You can try VirtualBox.