Step By Step Procedure:
Click Start -> Run. Type “dcpromo” and Click “Ok”.
You will see the Active Directory Installation Wizard, Click “Next”
Select Default Option of “Domain controller for a new Domain” and Click “ Next”
In this wizard we will create “Domain in a new forest” because it is the first DC, so select this option and Click “Next”.
Type Full DNS name for new domain. Ex: systemadministrator.in .Note: Don’t use your public domain because systems inside of your domain may not be able to reach the company website. Click “Next”.
Type the “NETBIOS NAME “Ex: systemadministrator. This name is used by old version of windows to identify the domain controller.
Select the Specific location for to store the AD database, log folders. The Default location is C:WINDOWSNTDS .Click “Next”. If you wish you can change the path to different location.
Select the Specific location for to Sharing “SYSVOL FOLDER”. The Default location is C:WINDOWSSYSVOL. Click “Next”. This folder contains public copy of active directory database.
Select Install and configure the DNS server on this computer and set this computer to use this DNS server as its preferred DNS server. Click “Next”.
We will assume there are no pre-Windows 2000 servers that will be accessing this domain, so keep the default of "Permissions compatible only with Windows 2000 or Windows Server 2003 operating systems" and Click "Next"
Type the “Restore mode Password, Confirm Password”, this password is used when you start the system in “Directory Services Restore mode.” Click “Next”.
Now we will see the “Summary” column, check all are correct or not. Click “Next”.
Now you will see the “Completing The Active Directory Installation page “Click “Finish”.
The changes will get reflected only after is system is rebooted.
After rebooting you system is right now as Domain Controller.