Theoretically it should work both ways, but in reality an OS9 or earlier server will work slow and very unreliably. Contact lost lots of times; if that happens when you save back a file you edited on the server, the program crashes (but in OSX, thankfully not the whole system). We almost always loose contact after sleep, and the server often doesn't even show up in the Network pane of Finder windows (10.3) - you have to type in the IP-adress. Not very userfriendly for unexperienced users. We have had endless hassle with that set-up.
The other way though, seems to work perfectly - and noticibly faster. Let the OSX machine do the work, and the other Macs can connect to it by clicking AppleShare in Chooser.
Your OSX server can also easily be sharing out internet-connections, from dial-up modems to DSL
Get a switch, not a hub. They are dead cheap these days, you don't really need a fancy brand. They all work in my experience, bought from a cheapy PC-Windoze shop. Any switch is better than a hub.
It's plug and play, mostly, if you do it the sensible way 8-)
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