Well your best friend is Google.
However, to answer your question, yes. Linux excels at this task. You want to setup what is called a SAMBA server. This will allow your Windows workstations to connect to the file shares on the Linux box.
Google for linux networking samba.
Any distribution will do for you. I'd recommend either SuSE (www.opensuse.org
) or Ubuntu (www.ubuntu.com
) or Mandriva (www.mandriva.org
) as a starting point.
Go for it!