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DNS Server question

Hello -

I am a total newbie to Tor/Privoxy/Vidalia - but am hooked.  Running
Windows/FireFox, setup was a snap... I even had a few friends install it
w/o issue.

My question is this: I have a small LAN here - with a Windows 2K3
server, and I use my WinXP box most of the day.  I have installed Tor,
etc on the XP box and for my DNS servers I have:

Where the 10.x number is my DNS server (also the Win2K3 box).

My question is, after reading the Tor website should i be worried about
this config?

Should I be installing Tor on the 2K3 sever?

Sorry if this sounds like a dumb question.  If it does, then I am not
explaining it well enough :)