Network setup - new office in another country

Our head office is located in Auckland, New Zealand. We have a new office in London which I would like to attach to our infrastructure (domain, exchange etc). The UK office has an ADSL2+ connection. I have to give them a file server at a minimum but I would like to make it a DC and Exchange server also. They will need to be able to access our network (file servers, SQL servers etc) and normally I would just setup a hardware VPN connection between their office and ours but I would still perfer for their internet traffic not to have to come all the way back to NZ, only the domain traffic.

How would I go about achieving this? I've seen and heard about using RAS and ISA

This also raises the following question

1. Should I put the UK office on a new domain or just on the same domain as our Head Office?
I'm thinking we keep them on the one domain to make life easier for exchange/SQL etc) but i'm not sure as i've seen both types of implementation.
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I would put them in the same forest, but a separate domain. Also setup the AD sites and services correctly in AD so that the authentication traffic stays local.
If you do a site to site VPN then most of those will allow you to only route internal traffic over the connection, usually by default. I know I didn't have to do anything special when I put two Ciscos back to back on a site to site VPN.

If they are going to get their own email domain ( then you could use the other server as a second MX record for each site. So your email has the UK server as the second MX record and the UK has yours. If one site goes down then the other would collect the email and queue.

Use the infrastructure VPN connection method, however setup split-tunneling. With this setup, any traffic bound for your internal address range(s) will go over the VPN however anything else will go out the public connection.
you can set up ISA site to site vpn  "you can use the ISA server three leg network template" + Domain Controller in caching mode at their location.
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