I see a bit of confusion here... Regarding "Selenium WebDriver" & "Selenium Server"
Selenium WebDriver 2.0 - helps to write scripts for automating browsers..this package provides us with classes & methods to achieve automation. After writing scripts we can run them on LOCAL MACHINE and see automation ourselves. WebDriver projects were merged with selenium RC to overcome the drawbacks of selenium RC making it selenium WebDriver 2.0
Selenium Server: Now once i have my scripts (as mentioned above),To run scripts on REMOTE MACHINES (Test Beds) and NOT ON LOCAL MACHINE we do it using selenium server. So in short Selenium Webdriver works together with Selenium Server..they co-exist to help and not to replace each other.
I hope this helps
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