SME:
1. In the server-manager click workgroup
2. Set the workgroup name (this is poorly labelled in SME), this will be our Domain name - eg "DOMAIN1"
3. Select "act as PDC"
4. Go to DHCP and specify all your DHCP stuff, make sure your gateway and DNS setting are correct.
Win2k:
1. Right Click 'My Computer'
1a. Select computer name and make sure says DOmain/your domain name - you might have to do this last? i cant recall, i join 20 machines a day to domain without looking usually

2. Click 'Network Identification'
3. Click 'Network ID'
4. The Wizard starts and I click 'Next'
5. I choose 'This computer is part of a business network...' and click 'Next'
6. I choose 'My company uses a network with a domain'. and click 'Next'
7. I see the screen that tells me all the stuff I need to know. I click 'Next'
8. I enter SME 'admin' for the username, the SME admin password, and the domain name we specified in the steps above. I click 'Next'.
9. I then get a message that says 'Your Computer must also belong to a domain'. I am prompted for the computer name and domain name. I enter the computer name and domain name and click 'Next'.
10. Then you will be prompted for the admin username and pass again , enter it, and the domain name, it will say all is good and prompt you to restart - when you restart you will see 3 field in the login dialogue, or you maybe need to hit options button to the third/domain field...then you MUST log in with an account that is creatyed on your domain controller - SME...create a regular user account onj SME and login in to your win2k box...
PS: i know nothing of SME 5.6 - so you may need to search around to see where this change for 5.6 - its possible you need to make a change with win2k registry...? Search these forums...