First, a few concepts.

Active Directory is built on two main protocols - LDAP, and DNS. It's also highly unwise to have only one DC - two DCs gives you an actual, functional AD forest. Only one has bits missing, which I can't remember off the top of my head. It bites you in the arse, I remember that much :-)

Without functional DNS (functional means that the DNS server can have A records added to it automatically via Dynamic/Secure Update and supports the other doin's mentioned in my first post), you will not be able to install Active Directory onto your chosen DC-to-be via the DCPROMO.EXE route.

One of the reasons you need your DNS sorted out is that in W2K, the domain is a security boundary. Without a domain, this vanishes, and so does your AD structure.

Installing AD is a commitment to a DNS structure. If you fully grok this and its implications, then you can plan and design your network. If you try and half-arse it or work around the DNS thing, you'll have a semi-broken network and you'll only end up reformatting the servers anyway.

As for step-by-step - unfortunately, I'm nowhere near a W2K server right now so can't help you out right this minute. If you can be a little patient, I'll dig out my old MCSE course notes and see if I can't whip up a "5 minute guide to installing AD" thing.