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creating a cross forest trust

Hi Experts, we recently acquired another facility to support, just trying to do some fact checking before proceeding, first off, we do now have a vpn tunnel between sites, both forests are at a 2000 forest functional level, if I'm not mistaken, both will need to be raised to a 2003 forest level before proceeeding, is there any negative impacts to worry about with doing this, all dc's and servers in both domains are either 2003, or 2008.
    Second, all I should have to do once I raise the forest levels is create dns forward lookup zones for each domain, and create the trust, is this correct?
  Thanks in advance for any advice/help!
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