I'm not sure if the two are connected but i suspect they are.

Basically I'm tring to setup Data Protection Manager 2010 on a fresh install of Server 2008 R2 in a SBS 2003 domain. Everything went fine until trying to install agents across the network. Upon clicking add, i get the following error message:

Unable to connect to the Active Directory Domain Services Database.

Make sure that the DPM server is a member of a domain and that the controller is running.
Also verify that there is network connectivity between the DPM server and the domain controller.

ID: 7

As usual (worryingly) the MSDN support for 2010 products is nearly non existant, clicking the error ID simply gives a page not found error. So after 2 days of Googling and trying various fixes (DNS settings, adding permissions to AD objects, rejoining the domain and many more) I thought I'd ask here in the hope that someone out there may have had this issue before.

Any help greatly appreciated!

Some further info:

Firewalls are disabled on the Server 2008, SBS, and client machines. Manually installing and adding the client in also fails, as the DPM server tries to contact the DC first.

Edit:

I tried creating a new protection group instead, and it gives a different error upon adding the machines:

Following machines are not found in AD:
COMPUTERNAME.COMPANYNAME.LOCAL

Is there a certain directory structure it follows in AD?