If you create a \\<DomainName>\DfsRoot\ParentLink\ChildLink link and then create a \\<DomainName>\DfsRoot\ParentLink link, refreshing the display makes the links appear to be nested. The child link no longer functions correctly.
The Windows 2000 GUI allows to chain links when building the DFS tree, even though nesting is NOT allowed.
NOTE: This behavior has been corrected in Windows Server 2003, so that the GUI prevents nesting.
On Windows 2000, you eventually get the following message:
DFS Link Chaining is not permitted, you must add your DFS link as a child of the local directory contained in the dfs root.
On Windows Server 2003, the message reads:
The following error occurred while creating the DFS link: The file exists.
NOTE: See the DFS white paper.