Share Point & Windows-based Hosting Service Accounts Group

I am having issues with a Service account on my Share point server, It tells me that the share point Farm account should not be used for other services.. So I went to change the service account and it only lists a local and network service. Not an actual user account from my domain, so when I attempt to register a service account it will not find any domain account i enter. We are in a domain with multiple DC's and with exchange. So I started looking around for a solution and some places online told me that I needed to add the account or accounts to my Windows-based hosting service accounts group.. Well I do not have any group listed in AD with that name.. Do I just need to create a group with that name? how can I register a new service account with share point? I am having a lot of issues with share point and I believe this is the cause.. Thank you in advance!
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Justin SmithSr. System EngineerCommented:
For starters, this is a bug in 2010.  That message is rediculous because SharePoint MUST use the farm account for some services.  In my deployments, I always disable that rule.

So is your current farm account set to an AD account?  Your environment has multiple DC's, but does it have multiple forests/domains too?  Or just one?  

I've seen the issue you are having in farms that either use local accounts for everything, or is in an environment with multiple forests.
castonincAuthor Commented:
The current Farm account is set to network service, so it is not set to an AD account. We have one domain, and really from reading up on this issue I think I need to create the correct Share point accounts and give them correct permissions. I think it is causing my site not function properly..
Justin SmithSr. System EngineerCommented:
best practice is to use AD accounts.  However you should still be able to register AD accounts with network service. When you specify an account to register, what is the exact message?  Keep in mind you must use the format domain\account
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castonincAuthor Commented:
Well I was able to register a domain account, and i selected to change the Farm account to the domain account that was registered.. and now when I try to open the central management it tell me cannot connect to the configuration database... great..
Justin SmithSr. System EngineerCommented:
Ok. You will need to run the command stsadm -o updatefarmcredentials to update the config db. I'm away from my computer and don't have the exact parameters but you can google it  

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castonincAuthor Commented:
Does that account have to have any special privileges? Right now it is just set to domain user..
Justin SmithSr. System EngineerCommented:
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