My friend is starting a business and wants my help in starting a website up for him. First of all, should he pay for remote hosting like goDaddy or network solutions? or do you think it would be better for me (since I would be in front of the computer itself) to setup a server in his business thats tied to his verizon business fios account?
Depends ... Recommendation is get it hosted.
When picking a web server, should I go with Ubuntu server or openSUSE server or use windows server 2008 with IIS? I also happened to get a copy of Microsoft SQL server, but I'm not sure if he is going to need a separate dedicated database server (doubt it).
Whatever rocks your boat and depends on what you are going to use. Linux is cheaper when you get it hosted.
I've been messing around on my home PC with windows 7. I ended up downloading XAMPP, which is a package of Apache HTTP, php, mySQL, and phpadmin. I only tinkered with it for a couple of hours. Using phpmyadmin as a web based interface into a mySQL database seemed pretty cool. It took me a bit to get the whole thing working right in windows (MS processes were locking out apache and mySQL at times).
I also had IIS installed (i have win 7 ultimate and i think it came with it) and it has a program called web platform installer, which is kind of like windows update I guess that has a bunch of web based technologies you can download. Things like JOOMLA!, wordpress, mySQL, php, DOTnetnuke etc.
Tons of choices and I don't have time to learn them all or even probably pros and cons. I would imagine the linux server choice would be the most secure and the only thing my friend would have to worry about is theft of the hard drive if he stores sensitive information. Although if I go with the windows route I bet I can teach my friend how to manage his own shit and update his website.
Use VM's if you want to play around in your PC. It should not take you too long to learn any of those Content Management Systems. They're pretty simple to get used to and there are tons of guides/tutorials/documents out there to help you out as most are open source.