Forestprep Error

[micon55]

Please help. I am at my wits end!
We are running a W2K domain and want to install Exchange 2K. We have previously had a E2K server working but this was upgraded and so a fresh install was required.
I have followed all the MS articles about removing E2K from AD and ADSIEdit removing the Exchange container. Have also used ldp to view the configuration.

So I am pretty sure that the AD and schema are clean. The problem we're having is that I cannot run forestprep successfully. I keep getting the error 0xC1037ae. I have searched the Net and MS knowledgebase and followed their instructions with no joy.

********************************************************
Setup failed while Creating templates (error 0xC1037AE6: Extending the schema in the Active Directory failed. Please consult the following error log: %s\LDIF.ERR.) .

Additional information:
An operations error occurred.

Facility: LDAP Provider
ID no: 80072020
Microsoft Exchange Setup

mode = 'ForestPrep' (61965)

Extending the schema in the Active Directory failed. Please consult the following error log: %s\LDIF.ERR.

ID no: c1037ae6
Microsoft Exchange Setup

mode = 'ForestPrep' (61965)

Setup encountered an error during Microsoft Exchange Forest Preparation of ForestPrep component task.


Function:
CAtomOrgCtChildren::ScCreateOrgLevelAdminGroupsCT
CAtomOrgCtChildren::ScAddDSObjects
CBaseAtom::ScSetup
ScRunLDIFScript
CAtomOrgCtChildren::ScInstallTemplates
CAtomOrgCtChildren::ScAddDSObjects
CBaseAtom::ScSetup
CBaseComponent::ScSetup
CCompForestPrep::ScSetup
CComExchSetupComponent::Install
****************************************************
Any help much appreciated.
Mike