This article is a part of a series describing the installation of Microsoft Office SharePoint Server 2007 (MOSS) on a Windows Server 2008 with the newly released SQL Server 2008. Please have a look at "Installing MOSS 2007 on Windows Server 2008 and SQL Server 2008 - Part 1: Overview".

• Right now I'm working on the SQL Server 2008 image.
• Open the "Run" dialog box and type "dcpromo".

• Click next without checking "Use advanced mode installation".
• Click next and after that check "Create a new domain in a new forest".

• Type a new full qualified domain name like "aglaser.net".
• In my environment I set the forest functional level to "Windows Server 2008".

• Make sure "DNS server" is checked.
• After clicking next you may get a warning that one of your network adapters has a dynamically assigned IP address. Click "Yes" if you are sure you have one network adapter with a static IP address.

• Click "Yes" because you don't have to care about a DNS server in a parent zone since this is a testing environment.
• Click next again.

• Type in a "Directory Services Restore Mode Administrator Password".
• Click next to start the installation wizard.

• After installing the AD and the DNS server you have to restart your computer.
• If you take a look at the roles you will see that "Active Directory Domain Services" and "DNS Server" are checked.

Please take a look at Part 3: Domain Accounts.