Active Directory requires DNS. AD populates DNS with SRV (service) records. This is how AD and Windows2000 clients find domain controllers and resources. Your first DC with Active Directory is your root server. The term PDC is really fuzzy in Win2K. If you have NT4 BDC's a Win2K DC with function as a PDC Emulator. But if all you DC's are Win2K the DC function as MultiMasters.
But back to another issue, your system freezing when trying to setup AD. You should still be able to install AD without a DNS (but it will not function properly, and the event log will be filled with DNS, AD errors) Make sure your hardware is supported, and that at least one partition is formatted in NFTS. The SYSVOL folder has to be location on an NTFS partition.
Just a word of advise: Do some reading up on AD before you try to implement it. It is VERY DIFFERENT then NT4 Domains.