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I'm working with a new client that has a number of PPC machines running 10.4 that are currently connected to an Xserve running 10.4 server.

Due to cost and compatibility issues, they're unable, at this time to upgrade any of the client machines, but need to replace the server, as they have already had a PSU failure. We're looking at putting in new hardware that would be running at least Lion server.

I've had experience with 10.4 clients connecting to a Lion server for AFP & other services, but not using Open Directory.

Does that work, and if so are there any caveats? If 10.4 doesn't work, does 10.5?

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