Only have a Primary DC (Server 2000!) and need to figure out how to upgrade it



I just hired in as a Network Tech / Desktop Support for a company and we have just under 100 users. Our Windows 2000 Server does DNS/DHCP and AD. There is no group policy going on that I know of, other than creating a default Administrator account on each desktop. We just use AD to create users so they can log into desktops. The only other thing we use AD for (that I can think of) is to control access to shared drives, which is extremely important to us. I'm an amateur in Network Administration and I have to admit i'm quite scared to be tasked with replacing this server. I tested server 2012 in Virtual Box, to mess around with it. I tried setting it up as a Backup Domain Controller, but it isn't compatible with the "Windows 2000 functional forest level". According to Microsoft, the only next thing compatible with our server is Server 2003, which is about to be killed off!
I even tried Zentyal Linux (in virtual box), as a free alternative domain controller, but it also gives the "Forest Functional Level" error message, stating we should be at Server 2003 or greater.

If anyone can give me some advice, I'd greatly appreciate it because there is so much our company will lose if (or WHEN) this Server goes down. IP Phone addresses are handed out from the server too, DHCP. Thank you.

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