Install the first Windows 2003 R2 DC in a 2003 AD
Run the adprep.exe /forestprep command from the Windows Server 2003 R2 installation disk 2 on the schema master.
Use the Windows Server 2003 R2 installation disk 2, and then type the following command: Drive:\CMPNENTS\R2\ADPREP\adprep.exe /forestprep
More infomation can be found in Microsoft KB917385



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