First you need to go to Start–>All Programs–>Administrative Tools–>Manage Your Server

Here you need to select Add or remove a role

Verify the following steps click on Next

Select Server Role as Domain Controller option click on Next

Summary of Your Selections click on Next

Active Directory Installation Wizard click on Next

Click “Next” on the compatibility window

Next window select the default option of “Domain Controller for a new domain” and click “Next”

In this tutorial we will create a domain in a new forest, because it is the first DC, so keep that option selected

Now we have to think of a name for our domain. If you have a domain like windowsreference.com”, you can use it, but it isn’t suggested because computers nside of your domain may not be able to reach the company website. Active directory domains don’t need to be “real” domains like the one above – they can be anything you wish. So i will create “windowsreference.int”.

Now in order to keep things simple, we will use “windowsreferenc”, which is the default selection, as the NetBIOS name of the domain.

The next dialog suggests storing the AD database and log on separate hard disks and you can just leave the default settings.

The SYSVOL folder is a public share, where things like .MSI software packages can be kept when you will distribute packages and you can just leave the default settings or you can change the path.

Next Screen basically says that you will need a DNS server in order for everything to work the way we want it (i.e., our “windowsreference.int” to be reachable).we will install the DNS server on this machine or if you want you can installed else where select “Install and Configure…” and click next.

Here you need to select the permissions for win 2000 or win 2003 server if you have any NT4 select first option otherwise select second option and click next

The restore mode password is the single password that all administrators hope to never use, however they should also never forget it because this is the single password that might save a failed server.click next

Now we will see a summary of what will happen click next

Active directory installation process started this can take several minutes. It’s likely that you will be prompted for your Windows Server 2003 CD (for DNS) so have it handy.