I wish to create a domain name for use within the local LAN only. I have Windows Server 2003. Please guide me.
Please read the following:
and then this
If you read with intent to understand, this should pretty much take care of you.
To create a DNS domain, you need to first install the Microsoft DNS service component of Windows Server. You can find this component under the control panel/add remove programs applet under the install Windows components section.
Once DNS is installed, under administrative tools you can find an MMC snap-in to manage it. Once you've opened the management tool, create a new Forward Lookup Zone. You can do this by right-clicking on the Forward Lookup Zone folder. When you name the forward lookup zone, you should take care to not use a domain name found on the Internet already. If you do, lookups to that domain will fail unless you mirror its records perfectly or perform a zone transfer (which will likely require some type of authentication). I usually name internal DNS zones at home using the .home or .internal top level schemas (mynet.internal is one example).
Once you have a zone created you need to populate it with records. A records, or host records are used to create name -> IP lookups for IPv4. If I created an A record called computer in the mynet.internal zone with the IP address 192.168.0.2 associated with it and I have a computer with my new DNS server registered as it's method for performing lookups then I will be able to resolve computer.mynet.internal to the aforementioned IP address.
Things you should look into after this is working:
Forwarding (to use your ISPs DNS server or something like OpenDNS for lookups not in your domain) Reverse Lookup Zones Host Record Types
I hope this helps.