If you have installed RMS (either Windows RMS on Windows Server 2003 or the AD RMS server role of Windows Server 2008) and want to upgrade the operating system on the domain controller, you must move RMS to another server before performing the upgrade. That's because running RMS on a domain controller presents a number of problems (for example, RMS groups are created as domain groups instead of local groups) that are only made worse when you upgrade the operating system.
To move RMS to another server and upgrade the operating system at the same time, you perform what's called a "join upgrade." To do this, you perform the following tasks:
Note: An error message might appear when you perform this step. This does not indicate a problem with the upgrade. Click OK to continue.
Microsoft strongly recommends that you do not run the AD RMS server role on a domain controller. AD RMS is designed to run as a server role on member servers only.
Maheshkumar S Tiwari edited Revision 1. Comment: Added Tag and minor edit