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Creating a Web Server

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http://askubuntu.com – Here's my problem in a nutshell: I have been given an old computer (Windows 2000 for now) and I need to install an Ubuntu OS (I'm thinking about Ubuntu Server), Moodle and perhaps a website. After this, the responsible for the network will connect my computer to it. Here are my questions: 1) What is the best OS that I should use? The computer won't be a desktop computer and I need it running at max speed. It will only be a server where I put Moodle so that my mates can access it and view the website. 2) Although it is not a desktop computer, can I still edit the files locally? 3) How do I (HowTos)