Raising Forest and Domain Functional Levels 2003 to 2008 R2

I’m in the process of raising my Forest & Domain Functional Levels from Windows Server 2003 to either Windows Server 2008 or Windows Server 2008 R2.  I’m looking for a recommendation as too which option to go with.  I currently have 2 DCs which are Windows Server 2008 R2 and all of my workstations are Windows 7 Pro.  I also have some Windows Server 2003 STD which are member servers and not DCs and will be working on retiring them in the next few months.  Is there anything I need to do prior to raising the Forest and Domain levels?  Should I raise the Forest then the Domain?  Appreciate any recommendations and assistance.  Thank you.
KCTechNetAsked:
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Joseph DalyCommented:
Unless you have a specific application that reccomends not going to 2008 R2 I would go to that forest/domain function level.

Before raising the level make sure that all of your DCs are 2008 R2 and the FSMO roles have been transferred and replication is working properly. Demote out all of you 2003 DCs and you should be able to raise the function level.
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KCTechNetAuthor Commented:
Yes, all of my DCs are 2008 R2.  How can I tell if the FSMO roles have been transferred and how do I test if replication is working properly?
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Joseph DalyCommented:
To check the fsmo roles you can run

Netdom query fsmo

From a command line. As far as the replication you can use dcdiag or the Microsoft replication tool
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Joseph DalyCommented:
I'm mobile otherwise I'd post a link for you.
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KCTechNetAuthor Commented:
I run both commands the Netdom Query and the dcdiag /c on both of my DCs and it looks like everything is working properly.  I have attached the results and would appreciate it if you could take a second look before Raising the functional levels.  Thank you.
Bhrs-2k8-dc1.rtf
Bhrs-2k8-dc2.rtf
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