ADLDS installation for SharePoint 2010 and Exchange Server 2010

We have to install Active Directory and Exchange Server 2010 on a Windows 2008 server that already has SharePoint 2010 running.  Once Active Directory is installed we plan to use it for our user base for both SharePoint 2010 and Exchange Server 2010.  We have decided all we need is AD LDS. During the setup wizard of AD LDS a popup asks "Do you want to create a application directory partition for this instance of AD LDS?  

We do not know if we have to create an application directory or will Exchange Server 2010  create its own application directory when we install Exchange Server 2010.  What is the answer.  
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Neil RussellTechnical Development LeadCommented:
Exchange requires full blown Active directory and will not run with ADLDS. Only the Edge transport server role will.

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