how does a server-based network work?

Answer 1

Depends on how you mean. That is a VERY broad question.

A "server" is basically any computer that "serves" information. If you have two PC's connected together on a network and you are sharing files between them, then they are file servers. If one PC shares a printer, then it is a print server.

If you mean a domain-based network, then you have to set up a domain controller & DNS server. I won't go into the details about that... there are whole series of books on that.