Go to Start >> Run and type “dcpromo” and press enter.

Server will now start checking if Active Directory Domain Services (AD DS) binaries are installed or not; if not, then it will install it.

Once the AD DS binaries are installed, you will get “Active Directory Domain Services Installation Wizard”

Here you will find a option “Use Advance Mode installation” which will show you more options (basically for advance user). You can keep the checkbox unchecked and press Next

Next Windows will show some basic information about Microsoft Windows 2008 Active Directory Services. Press Next to continue

Choose Deployment Configuration: This windows will allow to add the server to an existing Forest Or to Create a new Domain forest.

Select Create a new domain in a new forest and press Next.

Name the Forest Root Domain: Enter the name of the domain (Fully Qualified domain name) which will act as root domain for the AD DS and press Next..

It will take some time to check if the domain is already in use or not.

Set Forect Function Level: Read the description of every level before selecting the option

Set Domain Function Level: Read the description of every level before selecting the option

Additional Domain Controller Option: On this window you can select DNS service here. Also as this server is First domain controller in a forest it must have Global Catalog due to which it doesn’t allow you to enable or disable this feature. We want to set this Domain Controller Server as a DNS Server as well, so we have kept the check box beside DNS server selected. Press Next to continue.

Location for Database, Log Files and SYSVOL: In this window you can set the Path for database, log and SYSVOL files. If you don’t want to change it keep them default and Press Next.

Directory Services Restore Mode Administrator Password: Enter the Password (& confirm it) which you will use login into Domain Controller.

Summary: It will Show you the Summary of all configuration which you have selected. Here you can export the current configuratino whch can be used for any other setup.

Installation wizard will install/configure everything on your Server now

Reboot: Once the above process gets completed press Finish and reboot the Server.