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My home network consists of 3 desktops (and one htpc in the future), 1 laptop that comes and goes (and is part of a work domain) and soon another laptop that will be mostly home based.

I've thought that maybe the job of managing this network might be easier if I just set up a domain, network share and a user for each person with periodical backups.

My available PC is an atom board with 1GHz cpu and 2GB of ram, is that enough to set up as an SMB+DC+backup center?

What do I need to do to set up a domain at home?

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If you mean setting up a windows active directory domain at home for several pc's , it is like bying a truck to go shopping. A workgroup configuration should be enough for your case. But if you really want to set up a domain, the PC you have should behave well as a domain controller and file server. From all types of ressources, CPU is the most important for DC's but your server could be used as DC even in a big network.

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