Q. Can I use the SQL Server component for Web-based business applications?
A. Yes, new with Windows Small Business Server 2003 is the ability for you to use the SQL Server component for an unlimited number of un-authenticated users. As long as you are un-authenticated, you also do not need a Windows Small Business Server 2003 CAL.
Does that mean i can buy a MS SBS , which comes with MS SQL and exchange and use it in webhosting environment as well and can offer SQL??
OR The sql version which comes with 5 Client license can i use that?
OR do i need to get 1 CPU license for that.
...because of the resource usage of both servers, especially MS SQL.
I'm intending this as advice to everyone, not just server4sale, lower-end system don't react well to MS SQL. You're better off with two low-end web servers (Celeron, even) with a beefy Dual Opteron (or Xeon, if you must) MS SQL server backend, than one beefy (to use the term again) server running both IIS/MS SQL.