I have LS indie build (newest version installed on win2k server and it works just dandy. There were a few small issues, but nothing that isn't normal (like the taskbar not refreshing!).

I haven't had any issues with explorer butting in. It actually removed quite easily. Later I also added a shell-switcher to allow me to get back to explorer quickly and easily.. there is a problem with it, but I think that's due to my choice in switchers.. I'll d/l a newer/better one when I get the time :).