In Part 1 we extended the forest and domain schema in preparation for the first 2008 R2-based DC, and now in Part 2 we’ll create and fire up the new DC.

The big question was whether to create a virtualized domain controller or not. There are obvious concerns with going down this path in terms of redundancy and reliability, and particularly if the underlying hypervisor is a member of the domain, but after reading this article by Virtual PC Guy Ben Armstrong, I’m quite comfortable in taking this approach. With suitable precautions, of course.

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In order to get full management of a Windows 7 environment, or to take advantage of the new features in Active Directory Domain Services like Applocker or the AD Recycle Bin, you need to raise the domain functional level of the forest and domain to Server 2008 R2.

There are a few upgrade paths available – it is possible to perform an in-place upgrade of Windows Server to Server 2008 R2, but you need to verify that the path you have planned is supported. Here’s a list of supported in-place upgrade paths. However, performing a live upgrade of a domain controller is a gutsy move, so a side-by-side migration is the less dangerous (and recommended) path.

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