so the build floating around on Carracho. Will that update osx server? nad if I do use it, will I have to start from scratch once I get the official release?
The OS X update will not update the Server version. You will need to get the OS X Server 10.1 update from [insert warez program here] or directly from Apple. They are two totally different operating systems, and the utils in the server will not be updated with the client version.
However, OS X server WAS updated to version 10.1 today, so you can get that too.