My aim is to install and work with Active Directory on a small network.
I have followed the following steps to install DNS Server.

1>Add the DNS service to my Windows 2000 server from the Windows
Components option    in Add/Remove Programs in Control Panel.

2>Go into the server's TCP/IP properties and add the IP address of this
server as the DNS server address.
             IP Address:  192.168.0.203
Preffered DNS Server:  192.168.0.203

3>Configure a new DNS zone by right clicking on Forward Lookup Zones
and choosing New Zone.
Note: Name of the zone is private :<company_name>.local
        A standard primary lookup zone is created

4>Configure a Reverse Lookup Zone.
Note: Both forward and reverse lookup zones have been configured to
allow dynamic updates

So far, so good.
Now I try to install Active Directory by running dcpromo. When prompted
for my Active Directory domain name, I choose exactly the same name as
the DNS zone that I have set up earlier.
The error it throws now is :
This wizard cannot contact the DNS Server that handles the nameserver
<company_name>.local .....

WHY THIS ERROR?Any ideas???
Thanks in advance.