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Lots of diffrence in between Windows Server2008 and Windows Server2003
Virtualization. (Windows Server2008 introduces Hyper-V (V for Virtualization) but only on64bit versions. But Windows Server2003 doe not.
Windows Server2008 Role-based installation feature but in Windows Server2003 this feature not available
Windows Server2008 Supported Read Only Domain Controllers (RODC) but3003 does not support.
In Windows Server2008 WDS feature but2003 have RIS feature
Windows Server2008 Supported Fine -Grained password Policies but2003 not supported
Windows server2003 is not providing Core based means command line installation but in2010 you can do it. some features and roles are upgraded in2010 such as IIS and many others.