We want to setup a WSS (not MOSS) web farm in a DMZ without Active Directory. We're envisioning two WFEs and a separate SQL server for the databases. We've already got the first WFE and SQL Server setup, but are having difficulties adding the second WFE. Is it even possible to do this? Based on these articles, I'm beginning to think it isn't.:-
AFAIK, you will need a domain.
If you have more than one server I think using a domain is must have. You could consider adding Active Directory Application Mode (ADAM) but I found it to be more unusual/different setup than standard AD so I usually use normal AD. If this is virtualized environment you might want to add one additional virtual machine as your DC (on top of Windows 2008 Server Core).
AFAIK it requires AD whenever multiple servers are involved. That doesn't have to mean that you are using AD for authentication, you can still use anonymous or FBA. Local accounts cannot work because they are local to that system so users would not have any access to the other servers. I would recommend setting up a separate forest.