I have to say you gotta someitmes hate adobe. The new version of Adobe photoshop cs3 won’t allow you to install it’s version on Windows server 2003, but after some reasearch I found a way. I don’t deserve the credit the credit goes to several users who posted on adobe’s forum but the posting got deleted (I found a cached version though). Here what you do.

1. Look for file called “AdobePhotoshop10en_US_volume.proxy.xml” or “AdobePhotoshop10en.xml” (search for it).

2. Open it with notepad, scroll to the bottom, and change string starting with
{”OS… (I just deleted the OS string and replaced it with the bottom string)
to
{”OS”:{”Macintosh”:{”Require”:[{"Version":"10.4.8"}],”Exclude”:[{"Version":"10.4.8"}]},”Windows”:{”XP”:{”Exclude”:true},”Server2003″:{”Exclude”:true}}

3. Run the installation and everything should work smooth.

Hope it works for you, it did for me.