Upgrade in Place
As the name implies, an upgrade in place assumes that currently a good implementation of an NT domain structure exists, complete with users, groups, and computers. It also assumes that a security infrastructure is in place, with access control lists set on NTFS filesystem objects that restrict access to portions of the filesystem to the appropriate users. The goal of an upgrade in place is to preserve this structure, while also moving it to Active Directory.
If your current domain structure does not require collapsing or reorganization, an upgrade in place is as simple as upgrading your PDC, upgrading your BDCs one at a time, and then converting the domain to native mode as soon as the last NT BDC is upgraded to Windows 2000. ...
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