Slow Network Traffic In Dual Server 2003 Environment

Here is my setup...

There are two servers on our network. These two new, beefier servers are taking the place of an old Server 2000 machine. Both servers are currently operating on Windows 2003 Standard Edition, one server (server1) is a domain controller and the other server (server2) is a member of this domain. Server 2 is running SQL 2000 with SP3. Server 1 is just a file server that functions solely as a domain controller. Both servers have been updated to service pack 1 right after the initial install.

Everything is working correctly on server 1. There are no errors in the event logs. All computers can see each other on the network and they can open files from both servers quickly and easily. The problem I am having is this. We have an application that runs off of a SQL database. There is a lot of disk space consumed by the data created from this program. Whenever this application is open on a client computer, data transfer lags. In the program you can fill out different fields in a document and they are stored in this database. When you switch fields or open another document, there is a considerable lag. It was not like this on the old server.

I have made sure that the permissions are set on the folders on Server 2 so that Domain Users have full control (at the discretion of the software company). All of the data for this application is located on Server 2. Users authenticate through Server 1 and access Server 2 via a mapped drive.

Any Suggestions?
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First I'd confirm proper DNS settings.  Assuming that is OK then if performance is relatively OK with small amounts of data transfer but slows dramatically with larger amounts I'd check network card duplex settings.  Since the servers are the new item I'd check their settings and make sure they match the switch settings.  If you can tell with your network card, check for a lot of collisions - this usually indicates a duplex mismatch.
Is the database data and logs held on the same physical drive as the the file data? You may have a disk contention issue.
Would advise,if possible, that you put the system, sql data and file data on seperate drives.
Set all to Auto negotitate, including the switch ports. Try doing a large file copy from your workstation to the server, and vise versa. I have noticed that the traffic seems to be significantly slower one way than the other in most cases. See this previously accepted answer:
dbacklundAuthor Commented:
I may have found the problem although I haven't been able to confirm it yet. I have disabled Symantec Antivirus scanning on the network drive that the data is coming in from. I am going to observe for the next day or so and see if it makes a significant difference. While I am at it however, I am going to set up Server 2 as a secondary DNS server.

Thanks for the help.
dbacklundAuthor Commented:
The Symantec Antivirus was the problem after all. I have disabled the scanning of the network drive. I can not believe that I didn't see that. Thank you for all of your help.
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