There is a schema conflict with exchange 2000. the schema is not upgraded

You will need to break out the ADSI edit and strip out the old exchange server, is what this looks like. I do have some questions: Is there still exchange in your AD?  How many domain controllers do you currently have?  What is your forest functional level at this time?

the old exchange still shows up under domain controller. only have 1 domain controller right now, and domain functional llevel is 2000. I am trying to make my 2003 server the domain controller so i can add a new 2012 domain controller.

so how do i use adsi to get rid of it?

ok so i was able to delete from ad - but still get the same message

No, i dont have exchange - it was on an old server, that is no longer on the network.

I've had to do this a few times; there are several places where the AD stores exchange information; it is not simply one container or one entry.  Also, one must be cautious using ADSIedit, as it exposes the entire directory.  It is a 50 pound gun and the safety is off.  Also, what version of Exchange used to be there?  That will inform where keys are in the AD.

Try this, the situation sounds similar:
http://forums.petri.com/showthread.php?t=37992

it does not show up there any more

So you've stripped it out, but the schema upgrade still fails?  I found a technet that details different scenarios and Exchange inter-dependencies.

https://support.microsoft.com/kb/325379/en-us

Can you run a dcdiag and repadmin on the current dc and post these.

here is the dcdiag - the server's name is EXCHANGE because it was going to have EXCHANGE on it - but we never installed and went to another route, and retired the old exchange server.



Performing initial setup:
   Done gathering initial info.

Doing initial non skippeable tests

   Testing server: Default-First-Site-Name\EXCHANGE
      Starting test: Connectivity
         ......................... EXCHANGE passed test Connectivity

Doing primary tests

   Testing server: Default-First-Site-Name\EXCHANGE
      Starting test: Replications
         ......................... EXCHANGE passed test Replications
      Starting test: NCSecDesc
         ......................... EXCHANGE passed test NCSecDesc
      Starting test: NetLogons
         ......................... EXCHANGE passed test NetLogons
      Starting test: Advertising
         ......................... EXCHANGE passed test Advertising
      Starting test: KnowsOfRoleHolders
         ......................... EXCHANGE passed test KnowsOfRoleHolders
      Starting test: RidManager
         ......................... EXCHANGE passed test RidManager
      Starting test: MachineAccount
         ......................... EXCHANGE passed test MachineAccount
      Starting test: Services
         ......................... EXCHANGE passed test Services
      Starting test: ObjectsReplicated
         ......................... EXCHANGE passed test ObjectsReplicated
      Starting test: frssysvol
         ......................... EXCHANGE passed test frssysvol
      Starting test: kccevent
         ......................... EXCHANGE passed test kccevent
      Starting test: systemlog
         An Error Event occured.  EventID: 0x0000041B
            Time Generated: 08/29/2014   13:42:31
            Event String: The DHCP/BINL service has determined that it is
         An Error Event occured.  EventID: 0x8000003E
            Time Generated: 08/29/2014   13:42:37
            (Event String could not be retrieved)
         An Error Event occured.  EventID: 0x0000165B
            Time Generated: 08/29/2014   13:43:12
            (Event String could not be retrieved)
         An Error Event occured.  EventID: 0x0000169E
            Time Generated: 08/29/2014   13:56:25
            (Event String could not be retrieved)
         An Error Event occured.  EventID: 0x0000165B
            Time Generated: 08/29/2014   14:31:06
            (Event String could not be retrieved)
         An Error Event occured.  EventID: 0x0000041B
            Time Generated: 08/29/2014   14:31:07
            Event String: The DHCP/BINL service has determined that it is
         An Error Event occured.  EventID: 0x8000003E
            Time Generated: 08/29/2014   14:31:20
            (Event String could not be retrieved)
         ......................... EXCHANGE failed test systemlog

   Running enterprise tests on : JASWOHIONKY.ORG
      Starting test: Intersite
         ......................... JASWOHIONKY.ORG passed test Intersite
      Starting test: FsmoCheck
         ......................... JASWOHIONKY.ORG passed test FsmoCheck