Question : Exchange 2003 will not use local 2008 DC for GC/DC

Just installed Server 2008 DC/GC into my 2003 AD network, it is on the same LAN as a 2003 DC and a single Exchange 2003 server.  The issue is that the Exchange server will not detect the 2008 server as a GC or DC.  It will find the 2003 server, but if that server is shutdown it will go outside the LAN and detect remote location DC's.  

Items checked thus far;

-2008 Firewall disabled
-DNS is running correctly and Exchange is pointed at the 2008 server.
-Hard coded Exchange with the 2008 server (after reboot this caused exchange to be unresonsive, as if the GC/DC was not even present)
-No interesting error logs on either server

Any Ideas what I'm missing?  It's as if the 2008 server is not a DC.

Thanks

Answer : Exchange 2003 will not use local 2008 DC for GC/DC

Was missing manage auditing and security rights.