Hi AWACSone,
I don't think there are any free AD linux replacements, Samba may be getting close but I dont think its there yet. If you are going to replace both server and workstations in the end, you may be wasting effort trying to set up an AD replacement.
The Red Hat Emerging Technologies guys have created freeIPA which will be an equivalent to AD for linux/unix, it's still early days but I found it pretty solid. Basically it does all the painful config for you (kerberos,ldap,ntp,dns), the functionality is pretty basic yet but the roadmap for version 2 looks promising. I ran it up in the dev lab, single sign on to all linux hosts in the realm worked perfectly and the installation was a PoP.
http://www.freeipa.com
cheers,
kbp