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Active Directory functional levels?

I recently happened to right click on the my AD forest and clicked on "raise domain functional level" and noticed that it said Windows Server 2000....this confused me a bit since the server has Windows Server 2003 on it....can someone explain this to me?  Is it worth raising the level to Windows Server 2003? (We are migrating to Eindows Server 2008 and Exchange 2007)

What is involved in raising the level and what does it change? What are the differences between the domain functional levels of Windows 2000 and Windows 2003?

Thanks
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Awinish
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Yes it is worth raising it to Windows 2003.  The domain and forest functional level determine various features.  Good matrix/reference here

http://technet.microsoft.com/en-us/library/cc754918(WS.10).aspx

If you will never have another 2000 domain controller then you can safely raise it and as you can see in that link you get some nice features (link value replication, lastlogontimestamp to name a few)

How you raise them is either through the GUI or via command line  http://support.microsoft.com/kb/322692

So down the road once all your DCs are 2008 or 2008 R2 then you will raise the functional level again.

Thanks

Mike
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PWeerakoon
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Thanks, while I read the documents can someone give me the top five benefits and features of having a 2003 functional levels and top 3 negatives of it
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Same questions for windows 2008 functional benefits vs 2003

thanks all
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