Transitive trusts and existing child domains

If i look at MS Technet article around AD Forest trusts it states:

"Each time you create a new domain in a forest, a two-way, transitive trust relationship is automatically created between the new domain and its parent domain. If child domains are added to the new domain, the trust path flows upward through the domain hierarchy extending the initial trust path created between the new domain and its parent domain."

Does this mean that this automatic relationship is not created for existing child domains that were there before the trust was created? Do these need to be done manually?

Reason for question is that I am seeing this where Root Forest domain for Forest A doesn't trust child domains of Forest B and vice versa.
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jafar54Asked:
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Tony MassaConnect With a Mentor Commented:
It seems you're mixing intra-forest trust (parent-child) with external forest trust.
To your point, if you create a TWO-WAY forest trust, then there should be a transitive trust between all domains in each forest: http://technet.microsoft.com/en-us/library/cc773010(v=ws.10).aspx
Creating a forest trust between two Windows Server 2003 forests provides a one-way or two-way, transitive trust relationship between every domain residing within each forest
Are you sure that the trust was established as a two-way?  Can users from every other domain access resources in each of the other domains?

I would contend that it could be a problem with DNS resolution, maybe theres a duplicate NETBIOS name, or some other problem...new child domains should be automatically trusted in a two-way external forest trust.  From a domain computer in Forest A, can you browse to the NETLOGON folder on the new domain in forest B?

\\new.domain.FQDN\netlogon
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