Hi Manish,
Thanks for posting your question here. Either method will work just fine.
With the offline P2V option in VMM, you can convert existing physical domain controllers to virtual machines.
Keep in mind that when performing an offline conversion you’ll need to have the drivers for the network adapter in the physical computer for W2K8 and copied into the Driver Import folder on the VMM server prior to the conversion.
This is true for all offline conversions. But this functionality works great.
Conversely, building a new VM and then promoting it to a domain controller will also work.
Its just a bit more work involved to get it up and running and replicating successfully with the existing domain controllers.
I hope this helps.
Please let me know if you have any more questions about this process.
Thanks,
Mike Briggs [MSFT]
http://blogs.technet.com/scvmm
http://blogs.technet.com/mbriggs
** This information provided "AS IS" with no warranties, and confers no rights **
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Marked as answer by
Mike Briggs [MSFT]Microsoft employee, Moderator
Friday, May 21, 2010 2:09 PM