Setup a new AD server in Windows Server 2008 Enterprise R2

To setup a new AD server use following steps:

Install Windows Server 2008 Enterprise R2
Run 'dcpromo' command from start-menu run option
In the welcome screen choose "Advanced mode installation" check-box and click next
Click "next" on Operating System compatibility warning page
Choose "Create a new domain in a new forest" option and click next
For FQDN of forest root domain use "example1.com". Basically enter domain-name of organization. Click "next".
Choose desired domain netbios name such as "EXAMPLE1". Click next.
For Forest function level choose "Windows Server 2008 R2" from drop down-list. Click "next".
In select additional options for this domain controller, leave "DNS server" selected and click next
If there is a warning for a machine with DHCP IP in a test-lab environment then click "Yes" option to continue. In a real world production setup it is highly recommended that AD server should have static IP.
If there are DNS delegation error because there is no parent authoritative zone then ignore the error and click "Yes" to continue
In the following screen leave various paths to their default values and click "next"
Choose AD administrator password and click next.
Optionally export settings for quick setup later on before clicking next on summary screen. Click next if export is not desired.
Wait for considerable time for setup to finish. Optionally click "Reboot on completion" option.
After reboot AD should be setup properly.

To verify after reboot:

Open start menu -> Administrative Tools -> Server Manager
Expand "Roles" to see "Active Directory Domain Services"
Under "Active Directory Domain Services" there should be "Active Directory Users and Computers"
Under this there should be node for domain under which there would be Users option
Under "Users" right-click and choose "New -> User" option to create new AD user.

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