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Bryce... You may be correct but I can't be sure...

From "Windows Server 2003 Environment Training Kit":
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Domain Local groups function as a local group on the domain controller while the domain is in mixed functional level.



But then it goes on to say:
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Have domainwide scope in Windows 2000 native and WIndows Server 2003 domain functional level domains, and can be used to grant resource permission on any Windows Server 2003 computer within, but not beyond, the domain in which the group exists.




Clear as mud yet?



Ok i understand now...

the domain local has different method of functions depending on the type of domain it is a member of.

I am running 2000 mixed/native mode right now. So "domain local" is functioning much like the old nt4 domain controller local group.

With AD running in 2003 mode the "domain local" changes so that ALL 2003 non DC servers can use "domain local" just like a "local" group. it is a global group :P but MS calls it LOCAL to fit into their resource control model.

Bryce