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Flex, accept the defaults - my bad, I mean't to include that on the list. The default from what I remember when I did it (only this morning, ) was permissions compatible with pre Windows 2000 servers. I think, correct me if I'm wrong, that would put it in Mixed Mode as a pose to Native Mode.
Not sure how much it really matters, unless wiser people than me know otherwise.
Mixed Mode is for placing a 2k server in a network with existing NT PDCs. It will work OK (using Primary Domain Controller Emulator)
Native mode is where all Domain Controllers are w2k. Gives a bit more functionality.
That's what the Permissions question is at that stage, Flex. Don't worry - prob more useful to accept the pre-Windows 2000 option (thus putting the Server into Mixed Mode).
It would become another (simple) exercise later to switch the Domain Controller from Mixed to Native mode (can only be done in that direction, no return)
The 'Permissions compatible with pre-Windows 2000 servers' option places the Everyone group into the built-in 'Pre-Windows 2000 Compatible Access' group.This is 'A backward compatibility group which allows read access on all users and groups in the domain'.
The main need for this is on a network with an NT4 RAS server as it allows the RAS server permission to check AD for vpn/dial in permissions.
Even if you select the 'Permissions compatible only with Windows 2000 servers' option I think the domain will still be in mixed mode, just that this built in group for the NT RAS servers will be empty.