Pay attention to the following remarks:
1) Active Directory NEED DNS to work properly. If you "destroy" your DNS during your migration, you can encounter network resolution problems.
2) W2K and WXP client computers NEED DNS to find Domain Controllers and Global Catalogs servers. If no DNS, you can encounter problems authenticating your users on the domain.
Conclusion: you absolute need to make your DNS ALWAYS available.
It's possible by doing so:
During your in-place upgrade, DNS Server service will be installed on DC1. By default, all DNS zones hosted will be "Active-Directory Integrated". It means every records are stored in Active Directory database rather than in a text file (*.dns). When you'll install DC2 as an additional Domain Controller of an existing domain, also add the DNS Server Service on DC2. You'll be able to configure DNS on DC2 to be authoritative for your domain's zone (DNS MMC). Since you plan to remove DC1 for a while, be sure to configure your client computers and DC2 with the DC2's IP address as primary DNS server in your network configuration.
Then, transfer your 5 master roles and demote DC1.
Perform all necessary tasks to rebuild DC1 from scratch (if necessary) and promote it again as domain controller (don't forget to add the DNS server service and configure it to be authoritative for your domain's zone).
Hope this will help...