Backup, BACKUP, B A C K U P!
You first want to upgrade KiXtart because this part will be the easiest. Dont forget the KXRPC service for Windows 9x compatibility.
The install the third server as a BDC. Take the second BDC off-line and keep that one as a spare in case the whole upgrade blows up. This way you still have one working domain controller in reserve.
The continue with the rest of your upgrade. I recommend two backups after each step. One backup to tape and a second backup utilizing disk cloning software like PowerQuest Drive Image Pro or Norton Ghost. Chances are you won't need it but if you do.... The backups will pay off in no time.
Oh, and before doing all this. Make a written checklist on paper, don't store it on a computer (just in case you get locked out and can't log into that computer for whatever reason).
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There are two types of vessels, submarines and targets.