This is not believed to be due to hostile action, but the cause is still a mystery. Service is now fully restored. Feb 1st, added a links page, just like every other useless site on the web. Email service was restored within a few hours, but full recovery took a few days. For two days, email to certain people was held locally instead of being transmitted to their forwarding address.
All systems are now back to normal.
18th - FP98 installed on server. FP98 did not preserve these files and we figured that out late in the process. I purchased a new hard drive which quadrupled the capacity of the system. Thanks to the exmsft folks who chipped in for this purchase. This should the eliminate our monthly problems from log files filling up, inboxes overflowing, etc.