In Windows 2k8 servers you can install DFS by adding the role service from Server Manager by right-clicking Roles\File Services and then selecting Add Role Services. Also, you can add DFS while installing File Services using the Add Roles wizard.
DFS Namespaces enables you to group shared folders that are located on different servers into one or more logically structured namespaces. DFS Replication is a multiple-master replication engine that can replicate data between multiple servers over limited bandwidth network connections.
From the DFS Namespaces page, select Create a namespace now, using this wizard and enter your desired name in the text box. You can opt to create a namespace later on from the DFS management console by checking the Create a namespace later using the DFS Management snap-in in Server Manager option as shown below. Click Next
In Active Directory environments, it is recommended to use Domain-based namespace and if all DFS servers participating are running Windows Servers 2008 then check the Enable Windows Server 2008 mode option. For workgroup environments then go for the Stand-alone namespace option and click Next.
From the Namespace Configuration page, you can click the Add button to add folders to your new DFS Namespace. You can also do this later using the DFS Management snap-in. When adding folders you need to specify the corresponding folder name that will appear in your new namespace. When you click Next, the wizard displays the Confirmation page where you can review all parameters defined in the previous steps. In addition, if you enabled DFS replication then you are informed that further configuration is required. Click the Install and then Close buttons.