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Domain Controller

I am going to be replacing a windows 2003 domain controller with a windows 2008R2 domain controller. I want to re-use the same hostname and the same IP address. Is it better for me to leave the current domain controller promoted and just change the hostname and IP address or will that cause issues with my new domain controller if I don’t demote the old one?
This is a secondary domain controller that holds the PDC Role, does DFS, and is also our DHCP server.
I attempted this once and I wasn’t able to transfer the PDC role because it said the new domain controller wasn’t a replication partner. I added it to sites and trusts but maybe I just didn’t wait long enough. It also wouldn’t let me create the dfs with the same name as the old one but I think I found how to do that by deleting it from the system folder in AD, is that all that is necessary for DFS?
Basically I am just looking for some best practices when trying to re-use the IP and hostname to make this as smooth as possible. Thanks for your input!
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Yes it will be on the same domain.

I will still have a couple of domain controllers running on 2003 so I will not be raising the functional level just yet, they will all run at the 2003 level.
What if I just transfer the roles on this DC to our primary DC, then demote the old DC and change the hostname and IP address and then set the new one up with that hostname and IP address, then promote it to a DC and transfer the roles back from the primary DC?
I do have the DHCP database all transferred over already it's just not authorized yet.  

Do you see any issues that would arise doing it that way?
I definitely do not want to rebuild AD!
Yea, that actually sounds like a good way of doing it, and should work without much issue. I would suggest you do this during off-hours if possible though, in case of conflicts or problems.
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Thanks for the advice everyone, I apprectiate the input!