The first thing to check is if the first server is also the DNS server, then that is the problem. AD relies on DNS, so if DNS is unavailable then things that require access to AD (such as logging on) can have problems.
First Server probably had the PDC emulator FSMO role. Look up seizing FSMO roles from crashed servers on MS site. Need to transfer the roles the first server held to the second server and all should be good.
No it is not possible to have failover for the FSMO roles. There are 5 roles, different DC can have one or more of the roles. But if a DC goes down that hosts a FSMO role, you have to manually seize and move the role to another DC.
Yes, you can live without most FSMO roles for a few days at least. The problem is most likely the global catalog.
If you have a native mode domain, a global catalog is a requirement for logon. This is because your authenticating DC must contact a GC to enumerate your group membership and check for universal groups. If the authenticating DC is unable to contact a GC, it cannot verify your group membership, and will deny you access.
Go into Active Directory Sites and Services...expand your site, find the DC that you would like to add the GC role to...expand the server and expand the NTDS settings. Right click the NTDS connection and choose properties. There will be a check box for making the server a Global Catalog.
(I don't have a DC in front of me to verify these steps, but I am pretty sure that I am close.) Else, view help on Windows 2000/2003 for Global Catalog.
-I hope this helps..
Joseph L. Poandl
MCSE 2000
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