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Rename Server 2003 domain to avoid "single label domain" error when migrating to server 2008?

Hello Experts!

I have inherited a very odd top level domain of SQ.SpeedyQuote
There is only one DC and it is Windows Server 2003 Standard SP2. (server1.SQ.SpeedyQuote)
The previous sysadmin tried to migrate it to a new Server 2008 R2 and failed.
The error message he couldn't get past said he could not continue because it was a "single label domain name". I was under the impression that if you had a period in the domain name anywhere, even if its "SQ.SpeedyQuote" that it is not a single label name, it just has a really awkward top level name (instead of .local at the end). To be safe (and make my domain look normal) I was considering using the domain rename toolkit for server 2003 and adding .local to the end of it. I was wondering how risky it is to use the tool or how well it works. If I were to use it, am I missing any steps? :

1. Raise Domain and Forest Functional Level to Server 2003 (they both already are)
2. run "rendom /list" then "copy domainlist.xml domainlist-save.xml"
3. Modify domainlist.xml and change all instances of the domain name and save
4. run "rendom /upload" then "rendom /prepare" then "rendom /execute"
5. reboot server
6. run "rendom /end"

please share any tips or warnings about things you've encountered that went wrong during a domain rename using rendom and a suggestion of if you believe it is necessary or a good idea.
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Darius Ghassem
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Nothing really out there that you have to worry about that is critical just make sure you follow every step. The link I'm posting is the one I used which worked great.

http://www.petri.co.il/windows_2003_domain_rename.htm

I would still recommend to migrate to Windows 2008 Server R2 by using ADMT 3.0 to start on a fresh domain
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Tony J
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@dariusg: I am very comfortable when it comes to adprep, dcpromo, transferring FSMO roles, etc and don't usually have issues with that. Are there any advantages to using ADMT 3 instead?

@Tony1044: excellent question, sorry I forgot to mention; there is no exchange yet (thank god), so that won't be an issue.
Honestly with a single label domain name I usually migrate to a whole different domain with ADMT.

If you are upgrading your current domain to Windows 2008 Server you would use adprep, etc.

You can keep the domain that you renamed but I usually migrate to a different domian
Is my domain in fact a single label domain? I just find it odd that "speedyquote.local" would not be a single label, but that my "SQ.SpeedyQuote" would be a single label... I've always thought single label has no period, such as "speedyquote". Since I don't have exchange I would rather (if it is safe) just rename my domain and add .local to the end so I can be sure I won't get the single label domain error when moving AD to new 2008 R2 and promoting it.
Well technically no but it doesn't conform to the regular domain schemes
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Thanks to everyone for your help. I hope if others find this post the step-by-step .doc attachment will help.
Thank you for this.  I am tackling the domain rename process in the upcoming weeks and this is exactly the kind of information I have been looking for!