I have two offices connected via vpn. One is running Server 2008 R2 which is a DC for domain.local. In the second location I have a SBS2008 server. I want to make the SBS2008 server a DC in domain.local with the goal of allowing users in the second office to authenticate if the VPN is down and also to minimize some of the traffic going across the VPN. Can SBS 2008 do this?

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Have you though about going the other direction and migrating the users in domain.local to the SBS domain, and then joining the Server 2008 R2 machine to the SBS network as a secondary DC? That seems like a simpler path based on what I've read. – CurtM Nov 24 '10 at 7:30
Or just install a W2K8R2 server in the second location and configure it as a DC? Why the focus on SBS? – joeqwerty Nov 24 '10 at 13:42
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