From Setup to Management: Administering Active Directory Domain Services Like a Pro

Introduction

In this guided project, you will learn how to set up and manage Active Directory Domain Services, which is one of the most important parts of a Windows Server environment.

What is Active Directory?

Think of it as a big phonebook for your company’s computers and users. It helps you control who can access what, keeps your systems organized, and makes it easier to manage everything from one place.

If you have ever worked in a company where you log into a computer with your work email or user ID, chances are you were using Active Directory behind the scenes.

In this step-by-step guide, we will walk through the basics of:

• Preparing the environment and installing Install Hyper-V
• Setting up a domain
• Configure domain controller operations
• Configure user management operations
• Manage password policies
• Configure security settings

You don’t need to be an expert, just follow along, and by the end of this project, you will have your own mini Active Directory environment up and running.

Let’s get started!

Getting Set Up for the Project

This project is hands-on and guided — meaning you'll follow step-by-step tasks to build and manage a domain controller. Each step builds on the previous one, so it’s important to complete them in order.

What’s This Project About?

You will go through the full process of:

• Creating a domain controller
• Configuring its settings
• Keeping it up and running
• Promoting it (giving it the authority to manage users and security)

All without needing a paid Microsoft Azure account or dedicated server hardware.

What You will Need

To keep things budget-friendly and simple, everything runs virtually on your existing Windows 10 or 11 machine, but it must be the Pro or Enterprise edition, because only those support virtualization with Hyper-V.

Here’s the basic setup:

• Use Hyper-V (a built-in virtualization feature in Windows Pro/Enterprise)
• Create two virtual machines running Windows Server 2022 Evaluation Edition
• Your PC should have at least 16 GB RAM,but 8GB is still welcomed
• Optionally, you can use Windows Server with Hyper-V, or even a third-party virtualization tool if you prefer

Note: This guide uses Windows 10 pro in its examples.

You will be doing three key things in the setup phase:

1. Install Hyper-V
2. Create a virtual machine for the Domain Controller
3. Create a second VM as a Member Server

Once you're done with setup, return here to continue the rest of the project. Let's get building!

Install Hyper-V

In this task, you install Hyper-V and configure a NAT switch. You configure Hyper-V to use a different set of default directories to store virtual machine files and hard disks. You can use the options presented in these instructions or choose your own location.

• Sign in to the Windows computer with an account that has local Administrator privileges.
• On the Windows Computer click on search box, then search for Turn ON and OFF manage feature.
• On the System page of Settings, scroll down until you locate Turn windows Features off and On.
• On the Optional Features page, scroll down until you locate More Windows Features under Related Settings.
• On the Windows Feature page, select the checkbox next to Hyper-V and click OK as shown in the exhibit.

Finalize Hyper-V Setup & Customize Storage Paths
Once Hyper-V is installed, you will need to restart your computer and finish the setup by adjusting where your virtual machines and virtual hard disks (VHDs) are stored.

After Installation
After the Hyper-V installation completes, click Restart Now when prompted

Once your PC restarts, sign back in with your Administrator account

Set Up Hyper-V Manager
Click Start and search for Hyper-V Manager

When it appears, right-click it and pin it to your Taskbar for easy access

Open Hyper-V Manager

In the left pane, right-click your computer name and select Hyper-V Settings

Customize Virtual Machine Storage
Inside the Hyper-V Settings window:

• Under the Server section, click on Virtual Machines
• Change the default location to: C:\VirtualMachines

• Next, click on Virtual Hard Disks
• Change the location to: C:\VirtualMachines\VHDs
• Click OK to save your settings and close the window.

This custom setup helps you stay organized and makes it easier to clean up or move your VMs later on.

Set Up a NAT Network for Your Virtual Machines

Now that Hyper-V is ready, it’s time to create a NAT (Network Address Translation) network.

What this does?

This lets your virtual machines connect to the internet through your host machine, just like how your home Wi-Fi router works.

Using PowerShell

Open PowerShell as an Administrator:

Click Start, search for PowerShell

Right-click it and choose Run as administrator

Run the following commands to create a NAT network (copy and paste each line one at a time):
First command Run: New-VMSwitch -SwitchName “NATSwitch” -SwitchType Internal

Second command Run: New-NetIPAddress -IPAddress 10.10.10.1 -PrefixLength 24 -InterfaceAlias “vEthernet (NATSwitch)”

Third command Run: New-NetNat -Name “NATNetwork” –InternalIPInterfaceAddressPrefix “10.10.10.0/24”

Create Windows Server Domain Controller Virtual Machine

Next up, is deploying a Windows Server 2022 Domain Controller we will set up the heart of your lab: a Windows Server 2022 Domain Controller. This is the server that will manage your domain like user logins, security settings, and more.

Download the ISO File
To get started, download the Windows Server 2022 Evaluation Edition ISO from Microsoft:

Download from Microsoft 👉 https://www.microsoft.com/en-us/evalcenter/download-windows-server-2022
After download save the file in a folder called C:\ISOs on your machine

This ISO gives you access to the full version of Windows Server 2022 free to use for 180 days

Why use the Evaluation Edition? It’s perfect for learning, testing, and lab environments like this one — no license required upfront.

Create the Domain Controller Virtual Machine (TAILWIND-DC1)

Now it's time to spin up your first virtual machine: This one will act as your Domain Controller, the central brain of your lab environment.

Here’s how to do it using Hyper-V Manager:

Step-by-Step: Create the VM

• Open Hyper-V Manager
• In the Actions panel (on the right), click New > Virtual Machine

• In the wizard that opens:
• Click Next on the Before You Begin page

• On the Name and Location page:
• Set the name to TAILWIND-DC1
• Click Next

• On the Generation page, select Generation 2, then Next

• On the Memory page:
• Set Startup Memory to according to memory availiable for you to assign but not less than 2000 mb
• Keep "Use Dynamic Memory" checked
• Click Next

• On the Networking page:
• Choose NATSwitch from the dropdown menu
• Click Next

• On the Virtual Hard Disk page:
• Accept the default settings and click Next

• On the Installation Options page:
• Select "Install an operating system from a bootable image file"
• Click Browse and choose the Windows Server 2022 Evaluation ISO located in C:\ISOs (usually named SERVER_EVAL_x64FRE_en-us.iso)
• Click Next

• On the Summary page, click Finish

Disable Automatic Checkpoints
Once the VM is created:

In Hyper-V Manager, right-click TAILWIND-DC1 and choose Settings

Under Management, select Checkpoints

Make sure "Use automatic checkpoints" is unchecked

Click OK to save

🔒 Why disable automatic checkpoints? It keeps things cleaner and prevents Hyper-V from creating snapshot-style backups that could eat up disk space during testing.

Boot Up and Begin Installing Windows Server 2022
Now that your virtual machine (TAILWIND-DC1) is created, it’s time to install Windows Server 2022 from the ISO file you attached earlier.

Start the VM and Begin Installation

• In Hyper-V Manager, double-click TAILWIND-DC1 to open the Virtual Machine Connection window

• Click Start (the green button on the toolbar) to power on the VM

• Quickly watch for the message:
• "Press any key to boot from CD or DVD..."

• When you see it, click inside the VM window to focus, then press the tab key to highlight Restart Now and make it clickable

This tells the VM to boot from the ISO file you selected earlier

Begin Windows Server Setup
On the Microsoft Server Operating System Setup screen:

Leave all default settings as-is and click Next

On the next screen, click Install now

When asked to choose an edition: Select Windows Server 2022 Standard Evaluation (Desktop Experience) and Click Next

🪟 "Desktop Experience" gives you the full Windows GUI, ideal for hands-on learning and managing the server more easily.

Install Windows Server 2022 and Promote It to a Domain Controller

Now that your VM is ready and the ISO is mounted, it’s time to install Windows Server 2022 and turn it into a fully functional Domain Controller.

Finish Installing Windows Server
On the license terms screen, check “I Accept” and click Next

When asked about the type of installation, choose Custom

On the disk selection screen, pick Drive 0 and click Next

The OS will install and reboot, this may take several minutes

Then click on connect

When prompted to set the Administrator password, enter:Password1
(Use your own if you prefer, but this demo password works for the lab.)

After setup completes, log in with the Administrator account using the password above.

Set Static IP for the VM

On the VM, right-click the network icon (a globe) in the taskbar → choose Open Network & Internet Settings

Click Change adapter options

Right-click Ethernet → select Properties

Double-click Internet Protocol Version 4 (TCP/IPv4)

Enter the following static IP settings:

IP Address: 10.10.10.10
Subnet Mask: 255.255.255.0
Default Gateway: 10.10.10.1
DNS (Preferred): 1.1.1.1
DNS (Alternate): 8.8.8.8

Click OK, then Close. When prompted to allow network discovery, choose Yes

Rename the Server
Open Server Manager → click Local Server

Next to Computer Name, click the name to open System Properties

Click Change, then set the name to:

TAILWIND-DC1
Click OK and Restart Now when prompted

Log back in as Administrator

Install Active Directory Domain Services (AD DS)

In Server Manager, go to Manage → Add Roles and Features

Click Next through the following screens:

Before you begin

Select installation type → choose Role-based or feature-based

Select destination server → ensure TAILWIND-DC1 is selected

On Select server roles:

Check Active Directory Domain Services

Click Add Features when prompted

Click Next until you reach the Confirmation page

Click Install

This may take a few minutes.

To promote the Server to a Domain Controller:
In Server Manager, click the flag icon in the top-right corner

Click Promote this server to a domain controller

In the wizard:

On Deployment Configuration, choose Add a new forest

Set the root domain name to: tailwindtraders.internal

On Domain Controller Options, leave defaults, but enter this DSRM password twice:Password1

Click Next through the DNS, Additional Options, and Paths screens

On Review Options, click Next

On Prerequisites Check, click Install

The server will restart automatically when done.

Final Login
After the restart, log in using your new domain credentials:

Username: tailwindtraders\administrator

Password: Password1

You now have a working Active Directory Domain Controller running in a virtual environment, all from a Windows 11 machine.

Create Windows Server Domain Member Server

1. Create Virtual Machine (TAILWIND-MBR1) in Hyper-V Open Hyper-V Manager > Actions > New > Virtual Machine

On before you begin page click next

Name: TAILWIND-MBR1 click next

Generation: 2 click next

Memory: 4096 MB (Dynamic Memory enabled) choose any memory of your choice and click next

Networking: NATSwitch and click next

Virtual Hard Disk: Accept defaults

Install an OS from a bootable image file click on browse look for*ISO*:File: C:\ISOs\SERVER_EVAL_x64FRE_en-us.iso

Click on finish

2. Configure VM Settings

Right-click VM > Settings > Management > Checkpoints

Uncheck: Use automatic checkpoints

3. Install Windows Server

Double tap on TAILWIND-MBR1 → Start VM → Press any key to boot from ISO

Accept default language/keyboard settings > Next > Install now

Select version: Windows Server 2022 Standard Evaluation (Desktop Experience)

Accept license terms

Choose: Custom installation and Select Drive 0 > Click Next

Wait for OS installation to complete

4. Set Administrator Password

Use password: Pa55w.rdPa55w.rd or choose any password of your choice

Log in to VM after setup completes

Configure Network Settings

Right-click network icon > Open Network & Internet Settings

Click Change adapter options > Right-click Ethernet > Properties

Select Internet Protocol Version 4 (TCP/IPv4) > Properties

Set the following manually:

IP Address: 10.10.10.20

Subnet Mask: 255.255.255.0

Default Gateway: 10.10.10.1

DNS: 10.10.10.10 (Preferred), 8.8.8.8 (Alternate)

Click OK > Close > Select "Yes" when prompted to allow discovery

6. Rename Computer

Open Server Manager > Local Server > Computer Name

Click Change > Rename to: TAILWIND-MBR1

Restart the computer

7. Join Domain

After reboot, log in as Administrator using the password you created

Go to Server Manager > Local Server > Computer Name > Change

Under Member of, choose Domain: TAILWINDTRADERS

Credentials:

Username: TAILWINDTRADERS\Administrator

Password: Pa55w.rdPa55w.rd

Click OK > Confirm domain join > Restart VM

You have now successfully created and configured a Windows Server 2022 domain member server named TAILWIND-MBR1 and joined it to the TAILWINDTRADERS domain.