New Home Domain Setup trouble Svr 2003

Giganews Newsgroups
Subject: New Home Domain Setup trouble Svr 2003
Posted by:  Indiana Red (Indiana_Redhotmailcom)
Date: Thu, 20 Jul 2006

Fresh install Server 2003 Std.  Used typical setup and it is a Domain
controler of <I>domain</I>.local
When I try to create a user account, I get ..could not create...domain could
not be found.  I don't get how it could "not find" the domain of which itself
is the DC of.
BTW, I get the same message whre I try to change a nearby XP client to the
domain from its workgroup.  The client does in this case prompt for password
to make the change so it knows something is up.
DNS problem Im thinking maybe but not sure what else to verify first.
Any advice on a simple basic initial checklist of what should be in place?