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FQDN on a new inst.all of 2008 r2

I am installing AD on a Server 2008 R2 box. It is a clean install and is intended for a small business(10 users). The intention is to install exchange 2010 on the server.

My predicament is what to define the fqdn as. I have heard conflicting advice as to whether to use a 'real' domain or a .local. I have also heard that changing it later is troublesome. I am after some advice to guide me through this selection so I don't end up a cul-de-sac.
If there are any other pitfalls I shouldbe aware of please don't hold back :)
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Svet Paperov
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Lee W, MVP
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Personally I started using .LAN when I have osx (macs) to deal with on my network. .local is special with those things, kinda like a workgroup. I done have any supporting documentation, but it seems to work without any issues. Ignore this if you dont habe any macs, and If any other experts have reason to disagree, please correct me. This is a new thing I've tried only recently but it seems to work.
There were problems with OSX 10.0, 10.1 and I think 10.2 ,but I thought with 10.3 and later those problems were resolved... and nowadays, I would imagine if you still have 10.2 or earlier, it would be like running Windows 2000 on a workstation - they are that old.
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Thanks for a prompt reply to this question. I had a feeling that the answer was to go .local but many 'step-bystep' guides do not mention best practases for FQDN allocation in AD.

I hope you don't mind the points split.

Many thanks.