With regard to not needing server extensions - well yes, it's true, but...... Read what Microsoft has to say on the matter:-
"Microsoft has continued to make investments in FrontPage 2003 to enhance the overall customer experience, based on customer feedback and the changing role of server extensions in our overall product offerings. As we examined our options, it became clear that the best solution was to create a new and radically more powerful server story?Windows SharePoint? Services?and eliminate the need for server extensions beginning with FrontPage 2003. Today, the optimal combination for FrontPage is to use FrontPage 2003 in combination with Windows SharePoint Services. This allows you to access the entire set of new functionality in FrontPage 2003, along with improvement to the way you did things in FrontPage 2002 and other previous versions of FrontPage."
FP 2003 sites will run quite happily on a server with FP 2002 extensions installed - you just won't be able to use all the data handling funcionality.