Best way to replace a physical server

Soldato
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Bad title - but let me explain further.
We have a rather old file server that needs replacing (Server 2008). It's no longer under warranty and houses a vast percentage of the company's data.
Let's just call this machine "server1".
We effectively need to setup a new server and get all of the data copied across to it and then rename the server so that the new one is also called "server1".
There is a lot of data to copy and permissions need to be retained.

Speaking to my Linux administrator he tells me there is something called "Rsync" that would allow me to in effect sync up the data over the 2 servers over a period of time. Then I'd choose a cut-off time, down the old server, rename the new one and off we go.
Does anything similar exist for the Windows world to make sure that permissions are retained?
Any suggestions on the fight tools for this job?

Cheers.
 
Thanks for the posts - just a little update.
Current server is 2008, will be using 2012/R2 on the new one.
Current server is physical, the new server will be virtual (this will actually have its storage on a SAN.
Will look at the options given - ta.
 
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