If you're installing R2 on a domain controller (DC), you must first upgrade the schema to the R2 version (this is a minor change and mostly related to the new Dfs replication engine). To update the schema, run the Adprep utility, which you'll find in the Cmpnents\r2\adprep folder on the second CD-ROM. Before running this command, ensure all DCs are running Windows 2003 or Windows 2000 with SP2 (or later). Here's a sample execution of the Adprep /forestprep command:

 D:\CMPNENTS\R2\ADPREP>adprep /forestprep

 ADPREP WARNING:
 Before running adprep, all Windows 2000 domain controllers in the forest should be upgraded to Windows 2000 Service Pack 1 (SP1) with QFE 265089, or to Windows 2000 SP2 (or later).
 QFE 265089 (included in Windows 2000 SP2 and later) is required to prevent potential domain controller corruption.
 For more information about preparing your forest and domain see KB article Q331161 at http://support.microsoft.com.

 [User Action]
If ALL your existing Windows 2000 domain controllers meet this requirement, type
C and then press ENTER to continue. Otherwise, type any other key and press ENTER to quit.
C
Opened Connection to SAVDALDC01
SSPI Bind succeeded
Current Schema Version is 30
Upgrading schema to version 31
Connecting to "SAVDALDC01"
Logging in as current user using SSPI
Importing directory from file "C:\WINDOWS\system32\sch31.ldf"
Loading entries.....................................................
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139 entries modified successfully.


The command has completed successfully
Adprep successfully updated the forest-wide information.

After running Adprep, install R2 by performing these steps:

1.        Click the "Continue Windows Server 2003 R2 Setup" link, as the figureshows.

2.        At the "Welcome to the Windows Server 2003 R2 Setup Wizard" screen, click Next.

3.        You'll be prompted to enter an R2 CD key (this is different from your existing Windows 2003 keys) if the underlying OS wasn't installed from R2 media (e.g., a regular Windows 2003 SP1 installation). Enter the R2 key and click Next. Note: The license key entered for R2 must match the underlying OS type, which means if you installed Windows 2003 using a volume-license version key, then you can't use a retail or Microsoft Developer Network (MSDN) R2 key.

4.        You'll see the setup summary screen which confirms the actions to be performed (e.g., Copy files). Click Next.