The DFS Namespaces team is excited to announce upcoming support for domain-based namespaces that exceed the previous size recommendation of 5,000 folders with targets in a namespace. Starting in Windows Server 2008, you will be able to use the DFS Management
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Read the complete post at http://blogs.technet.com/filecab/archive/2007/07/24/new-in-windows-server-2008-breaking-the-5k-folder-barrier-in-domain-based-namespaces.aspx