Adprep error: 2003 server to windows 2008

Im having a problem with adprep. Heres what i have:

2 Windows Server 2003 no sp3
(Domain Controller) File, printer, server as well
(Exchange and BDC)

1 New 2008 Server
(The new PDC win server 2008 that I just built)

Im trying to replicate the DC to the 2008 box. Then making it my DC.

What Ive tried
-Restarted
-Check for any weird services. Such as Adware, Mcfee, antivirus, etc.
- run adprep.exe /forestprep on the 2003 DC (master sche. role, and logged in as admin) to have it prepared.
Then error!
-I've tried it even when after hours.

Another thing I just did to my 2003 DC Rasied the Function level from windows 2000 native to windows 2003. Another thing I checked it's not windows server 2003,sp2.
What I want to do is kill all of the services, and startup, in msconfig. then run it.
I'm new to this domain and trying to fix all the problems left behind.
Much thanks

 
ADPREP WARNING:
 
Before running adprep, all Windows 2000 Active Directory Domain Controllers in t
he forest should be upgraded to Windows 2000 Service Pack 4 (SP4) or later.
 
[User Action]
If ALL your existing Windows 2000 Active Directory Domain Controllers meet this
requirement, type C and then press ENTER to continue. Otherwise, type any other
key and press ENTER to quit.
 
 
c
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Adprep was unable to complete because the call back function failed.
[Status/Consequence]
Error message: Error(8224) while running ""C:\WINDOWS\system32\LDIFde.exe" -o Ob
jectGuid -d "CN=serversContainer-Display,CN=416,CN=DisplaySpecifiers,CN=Configur
ation,DC=KG,DC=local" -u -f "C:\DOCUME~1\ADMINI~1.KIR\LOCALS~1\Temp\2
\TMP3CD.tmp" -j "C:\WINDOWS\debug\adprep\logs\20090227131349" -s DC". See error file: "C:\WINDOWS\debug\adprep\logs\20090227131349\Displ
aySpecifierUpgradeLdifError.001.txt."  (0x80004005).
[User Action]
Check the log file ADPrep.log, in the C:\WINDOWS\debug\adprep\logs\2009022713134
9 directory for more information.
 
 
Adprep was unable to update forest information.
[Status/Consequence]
Adprep requires access to existing forest-wide information from the schema maste
r in order to complete this operation.
[User Action]
Check the log file, ADPrep.log, in the C:\WINDOWS\debug\adprep\logs\200902271313
49 directory for more information.
 
The IDif.log states:
Connecting to "Doman Name"
The connection cannot be established
The error code is 8224
(But I can ping it from the new server and everything else)

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