With Small Business Server 2003 there are only two Domain Functional Levels Windows 2000 Native (default) or Windows Server 2003 and two Forest Functional Level Windows 2000 (default) or Windows Server 2003
The tool used to change the both the Domain and Forest Functional level is Active Directory Domain and Trusts
Raise the domain functional level
CAUTION: Cannot changed back to Windows 2000 native domain.- Log on to the SBS server with domain administrator credentials. The default Administrators account will do.
- Click Start, All Programs, Administrative Tools and Active Directory Domains and Trusts.
- In the console tree, right-click the domain, and then click Raise Domain Functional Level.
- Under Select an available domain functional level, click Windows Server 2003, and then click Raise.
Note: You can also raise the domain functional level in the Active Directory Users and Computers.
Raise the forest functional level
CAUTION: Cannot be change back to Windows 2000 forest functional level.- Log on to the SBS server with a user account that is a member of the Enterprise Administrators group. The default Administrators account is a member of this group.
- Click Start, All Programs, Administrative Tools and Active Directory Domains and Trusts.
- In the console tree, right-click Active Directory Domains and Trusts, and then click Raise Forest Functional Level.
- Under Select an available forest functional level, click Windows Server 2003, and then click Raise.
Further information:
Microsoft Support: How to raise domain and forest functional levels in Windows Server 2003
Microsoft TechNet: Functional Levels Background Information
SBS 2003: Exchange 2003 Change Mode
This Blog: SBS 2003- Exchange 2003 Change Mode
Microsoft Support: How To Convert from Mixed Mode to Native Mode in Exchange
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