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Question on Active Directory/Servers

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I work for a very small school district.  About 50 computers.  1 server.  We are fixing to deploy Windows 7.  We are also updating WIndows Server 2003 to Windows Server 2008 R2 Standard.  However, our server only has 4GB of Ram and a 250GB Hard Drive with a 2.0 TB Backup Buffalo External Hard Drive.  Do you all think this is adequate enough to run Active Directory Domain Services with 50 users on at a time maximum?  We have a very limited budget/almost none.  Any help would be appreciated.


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