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W2K3 role change

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hi all,
I've inherited an existing network (well..sort of!) that has W2K3 Std Ed. Server running on Terminal Server level with 3rd party productivity applications installed and accessed by mix of XP Home & Pro boxes locally using RDP.
I intend to change the role of Server to local DC; with AD; User Management & Group Policies and as appropriate upgrade w/stations from XPHome to Pro for them to be part of the Domain.
Can you pls suggest best practice/considerations/things-to-note before I change Server role and elevate to DC.
Any response/s would be much appreciated.
cheers!
Eddie

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