Along with the Active Directory Recycle Bin, a tremendous benefit to upgrading your Active Directory functional levels to 2008 R2 is the ability to use DFSR replication between domain controllers. With 2003 and earlier, domain controllers used File Replication Services to replicate directories like SYSVOL. FRS has several drawbacks such as having to retransmit entire files and minimal self-healing capabilities.
With 2008 and later versions, you can migrate from FRS to DFSR (Distributed File System Replication). DFSR can replicate only changed bits (useful for large logon scripts, company wallpaper, install files, and other items commonly found in the SYSVOL directory) and has more robust self-healing capabilities for conflict resolution.
Domains that are installed with 2008 or later functionality will have DFSR enabled by default. This procedure is only necessary for domains and forests that have been upgraded from 2003. Read more >>