Adding a Win 2008 R2 DC to a Win 2000 Server domain

I am in the process of moving our active directory environment off of Windows 2000 server to a new Windows 2008 R2 server. I have prepped our Windows 2000 domain and upgraded the schema so that I could add the DC role to the Windows 2008 server. I can replicate changes between the 2 servers but I am having an issue replicating the sysvol directory to the new Windows 2008 server.

I have tried forcing replication by stopping the ntfrs & netlogon services and setting the D4 & D2 flags in the registry on the appropriate servers and restarting both of those services. (http://support.microsoft.com/kb/315457)

The sysvol and netlogon network shares are both present on the Windows 2008 server.

We are using Bind 9 for our internal DNS but both of the servers have dns running on them. The Windows 2000 server points to Bind 9 server for primary and itself for secondary. The Windows 2008 server points to the same Bind 9 server for primary and itself for secondary.

Also note: I did not move any of the schema roles over to the Windows 2008 R2 server.

When I run 'dcdiag' on the W2008 server all test pass and I only get errors that there are issues in the event log that have to do with GPO's:

The processing of Group Policy failed. Windows attempted to read the file \mydomain.com\sysvol\mydomain.com\Policies{GUID removed}\gpt.ini from a domain controller and was not successful. Group Policy settings may not be applied until this event is resolved. This issue may be transient and could be caused by one or more of the following: An error event occurred. EventID: 0x00000422

Any suggestions would be greatly appreciated!!!

-mike