I'm new to windows server 2003 installation. The situation is: (1)the server 2003 is asigned an static ip address by router, I use this static ip address as the DNS address. Is it a must to add ISP's DNS address to Forwarders ? (2)I've make a new Forward lookup zone the same name as the new domain I want to create. DNS set to the ip address of server. But when I do DCPROMO to create a new domain I receive the DNS server failure...The wizard encountered an error while trying to determine if the DNS server with which this domain controller will register supports dynamic updates. (3)I didn't install DHCP. Is DHCP necessary for a DC ? I'm a bit new so please help me even if you think my question is stupid. Thanks.

1) If you're creating a domain then yes, it's a must. In a domain, clients authenticate to the DC on login and their DNS IP must point to your DNS server. If it's not, they can't contact the DC and therefore cannot authenticate. You will want to forward the DNS server to your ISP's DNS server(s) if you wish your clients to have external (internet access) as your DNS server can only resolve requests inside the local zone. 2) Allow dcpromo to automatically setup DNS during promotion. Don't try to do it yourself if you're new to 2003 and creating DC's and domains. If memory serves me (and I may be wrong, my job has taken me away from domain admin so it's been a while) after the promotion, you should already have a forward lookup zone for your domain and shouldn't need to create a new one. 3) It's not necessary but using DHCP is easier than statically assigning IP's to clients. This is entirely up to you.

Thanks very much. I have another question on removing DC installed not properly. There is one installation using dcpromo to install active directory as domain controller. But the installation fails and the active directory even not works! I tried to use dcpromo to remove this failed installation but there is no such an option. I notice that the server management shortcut is also not working. So any solution?

There is one more problem. After I installed DC and reboot computer. It takes a very long time hanging on applying computer settings.

If I restart in safe mode, it won't hang on applying computer settings.