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How do i setup my linux server to act as a internal ftp server
There are several ftp daemons that are available to run a FTP server. I personally like proftpd. If its an internal server then you could bind the ip address of the ftp server to the internal ip address for your network.
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They would have to go through a ftp server on the network server to get outside to the internet?
You do not need to route ftp traffic through a local ftp server and then to a remote one. If your 30 machines have access to the Internet, then they could just go directly to the IP address or domain name address of the external ftp server. Of course, you should look at how they get out to the Internet from the local network. Is there firewalls, routers, etc.. that could possibly block the connection?
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How would i set up a mail server on my linux box?
Setting up a mail server requires two different services. First you need MTA (Mail transfer agent) service to send/receive mail from the server. Sendmail is probally the most popular but others have proven to be very good also. Second, unless your users have shell accounts to check their email, you will need to setup IMAP/POP3 so that users could login using a Mail client, authenticate, and download their email.
A final bit of advice, if this is something that is new to you, then you should definetely take a look at some online docs or get a Linux administration manual. The ones published by OReilley provide excellent detail that is easy to understand.