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Why only External trust type and No Transitive on 2008 R2 server (win 2000 AD level)?

I was trying to set up domain trust between the two domains:
AD 2003 on 2003 server
AD 2000 level on 2008 R2 server

I did the set up on the side of 2008 R2, and found it will always go with trust type = External and Transitive = No. My preference is trust type = Forest and Transitive = Yes. But I found there is no way to choose. Did I miss something? Can you help?
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Will Szymkowski
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actually we have to raise both domain and forest to 2003 level to see the transient