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Splitting up Win2k8 Domain

I would like to split up my network into two separate domains that will not communicate with each other.

I currently have a single domain with 7 servers.
I would like to have 2 separate domains.  I.E Domain1 & Domain2
Domain1 I would have 3 Servers  1 DC
Domain 2 would have 4 servers 1 DC
OS on both DC's Win2k8- r2 64 bit.
Domain and Forest functional level = Win2k3

The users will not share resources anymore. Company is splitting up.
What is the best way to accomplish this. Please be as specific as possible.
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arnold
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First recommendation is to make sure you have two DCs in each.
Using HyperV with VMs you may achieve what you currently have in physical setup for one in both.

Two servers having a hyper-v a VM DC on each and then whatever other applications you have.
You will have three physical servers left for IO intensive applications that can not or should not be virtualized.

Depending onthe win2k8 version you have, ...
Hi,

The challenging part would be, how you move or split the users between 2 domains. Since you have 1 domain at the moment, you should create the 2nd domain but how you are planning to split the existing users? if the existing users stay in 1st domain then there won't be any issues. Otherwise you need to create trust between these 2 domains at least for moving the users.
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Sarang Tinguria
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HelpMe01

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The users will not share resources on either domain.

I can not do a VM infrastructure right now.

The users are in different companies.
I.E. Users in Domain1 will not need to access Domain2 (and Vise Versa)

If I delete the users, computers What about the rights in the folders the have access to.

Right now they have different home folders on different servers (Already split)
The resources are already split. I just need to migrate the servers, and users to another domain.
Your split is user based which is tied into UUID/GUID
when you separate the users from the Domain, the file ownerships/rights have to be adjusted accordingly. Using the suggestion of transferring users between the two domains will preserve their UUID/GUID and the rights to the files.

Going to a single DC leaves you vulnerable.
Once you remove the user from the domain you will have orphaned SID's on the file shares. This is only an esthetic problem not a functional problem and the users that HAD those SID's will not be able to access the previous shares. Changing your administrative passwords is a good idea on the older domain.
I will setup a new forest
Create a trust
Run ADMT 3.1
implement Sid history (removes sharing)
implement Sid filtering
then Delete the computers / users from original domain.

Thanks everyone for the quick answers.
are you in same physical location?

you can do all these by vlan configuration on switch layer3. just define different vlan and here you go..
I needed to remove the servers from the domain. Vlan will not work in my scenario.
Thanks for the suggestion though.