Can I use a desktop install as a server?
Solution 1:
Certainly. If you look at the packaging the desktop is build on top of the same core as the server. Any of the packages you can install on the server can be installed on the desktop.
If you choose you can install one or more desktops on top of your server. Look at the packages ubuntu-desktop, kubuntu-desktop, lubuntu-desktop, etc. These all convert a server install into a desktop install. If you add them to a desktop install, you get to select which desktop environment you want to work with.
Tools from one desktop environment can be installed and run on another desktop environment. The dependency mechanism will ensure all the packages required by the tool are installed.
Solution 2:
For a clean start, you can install Ubuntu Desktop Edition and than install server apps from repositories or from their respective sites. But before you go ahead and install the apps and end up again with "more of CLI" I recommend you to go quickly through Getting Started with Ubuntu 10.O4 from here (this book was published to accompany with Ubuntu 10.04 but it is also applicable to Ubuntu 10.10), this book will first make you aware of how things work in Ubuntu, so in case you run into trouble (though not likely), you'll find your help at right place from right people. Hope this helps....