Ok, small office. One server setup with domain controller running windows server 2003 standard edition. 15 people all windows XP pro log into domain and can access internet along with server. I added a second server (2003 business small server) mainly for space and for application server to be ran on and cannot access internet. During setup had to demote domain controller so i could connect it to the existing domain. added server has static IP's, can ping internal gateway and dns server. its on the network and can browse. just can't get internet.

From the sounds of it, you have the wrong DNS address on the SBS server.

I have the DNS address of the internal DNS server. I'm not sure what else is there to do.

Would this have anything to do with demoting 2003 Small Business Server domain controller so I could add it to the existing domain?

Carefull, you added a sbs server. This new server must be the only server within 14 days, acquiring all FMO roles. My suggestion is to always run standard version on all servers when there is more then 1 server at the company. In your case you can run the SBS and the standard as a client. Why did you demoted the small business? to add it to the existing domain? Was it added to another domain before then? Anyway, if you are having trouble winsbs2003 shutting itself down in a few days, there is a workaround for this. Keep us posted! :)

I thought so. It was miscommunication when the server came pre-installed with 2003 small businesss server. Going to install server 2003 standard. Now when adding this, i won't have to worry about setting anything or configuring anything will i since i already have DC in place? Just give it all static IP's for network and add it to domain and I will be good to go? Once i put the DNS address in will that be all for internet connectivity???

Well, your internet connectivity is not depending only on your domain status. If your dhcp settings are pointing to the right DNS server and the right gateway, it should also be ok. Off course, we don't want a server acquiring a dynamic ip adress, so configure an ip address manually, inserting also the ip of the first server as dns server and the ip of your internet gateway, most of the times this is the router, thus another ip then the server. Then you make this server a member of the domain, so you can access the files on the network etc... I would also promote this second server as a domain controller, which gives you a backup DC...