Sarge is the next upcoming Debian 3.1 release. It hasn't been
released to Stable yet, but it should be very close. Debian 3.0
(Woody) is so old now, and 3.1 is so close to being released, that I
wouldn't even consider installing 3.0 on a server, I'd just install
Unstable or Testing right now (not sure which), then switch over to
Stable as soon as Sarge is released.
I haven't actually tried that myself, but if Mike S. does
decide to go with Debian, that's what I'd recommend.