I have two Windows Server 2000 SP4 domain controllers. (Server1 and Server2) Server2 also has Exchange 2003 SP2 installed on it. I want to get Exchange 2007 going. So I setup a new Server (Server3) with Windows 2003 SP2. This Server is a domain controller. I transferred all the FSMO roles and Global Catalog over so its now the primary domain controller. The original domain controller was Server1, a Windows 2000 Server. I created a Windows Server 2003 x64 SP2 Server that will be used for Exchange 2007. When I run setup /PrepareLegacyExchangePermissions I get no errors: D:\Admin\en_exchange_2007_standard_and_enterprise_dvd_X12-98653>setup /PrepareLegacyExchangePermissions Welcome to Microsoft Exchange Server 2007 Unattended Setup Preparing Exchange Setup No Server roles will be installed Performing Microsoft Exchange Server Prerequisite Check Organization Checks ......................... COMPLETED Configuring Microsoft Exchange Server Updating legacy permissions ......................... COMPLETED The Microsoft Exchange Server setup operation completed successfully. However, when I run setup /PrepareSchema I get the following error: D:\Admin\en_exchange_2007_standard_and_enterprise_dvd_X12-98653>setup /PrepareSchema Welcome to Microsoft Exchange Server 2007 Unattended Setup Preparing Exchange Setup No Server roles will be installed Performing Microsoft Exchange Server Prerequisite Check Organization Checks ......................... FAILED The Active Directory schema will be upgraded if you continue. Verify that the organization is ready for Exchange 2007 by running the Exchange 2007 Readiness Check, which is part of the Exchange Best Practices Analyzer. Setup encountered a problem while validating the state of Active Directory: Domain Controller 'Server1.domain.com' Operating System version is 5.0 (2195) Service Pack 4. The minimum version required is 5.2 (3790) Service Pack 1. The Exchange Server setup operation did not complete. Visit http://support.microsoft.com and enter the Error ID to find more information. Exchange Server setup encountered an error. I am not sure why it is looking for the old primary domain controller, Server1. It should look at Server3 which is Windows 2003. All the FSMO roles have been properly copied over. The event viewer stated this when I transferred the roles over. I even ran netdom query pdc and netdom query fsmo and it all points to Server3. Any idea why when I try to install Exchange 2007 or run setup /PrepareSchema it points to the old domain controller, Server1??? Any help would be great.

We had your issue earlier today and in our research, stumbled onto your post. We later resolved the issue by using the /DomainController or /DC switch during the installtion of exchange. using this method, you must install Exchange 2007 from the command line, so make sure you read all the options. For example: we forgot to create public folder support for outlook 2003 because we didnt specify the outlook 2003 switch. read more here: http://technet.microsoft.com/en-us/library/bb125224.aspx "...If you have any domain controllers that are running Windows 2000 Server and you are using the Exchange 2007 RTM Setup.com, you must run each of the steps below with the /DomainController parameter to specify a domain controller that is running Windows Server 2003 SP1. If you are using Setup.com from Exchange 2007 SP1, you do not have to specify a domain controller that is running Windows Server 2003 SP1..." by the way, this resolves our outlook issue: http://support.microsoft.com/kb/555851