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About Domain and Active Directory Account Mode

Each site has users, and part of the administrator's job is to ensure that users of the site have appropriate site permissions. To grant permissions to a website, users must be added to the site (either standalone or as part of a cross-site user group) and assigned to a site group. In Microsoft Windows SharePoint Services, you can add one of two modes users and cross-site group:

domain account mode used within the organization, to grant permissions to users with ready-domain accounts .

Active Directory account mode is used by Internet service providers to create unique accounts for customers. It will determine which mode to use when

First install and configure Windows SharePoint Services, the future can not switch modes. Regardless of which mode you use, you can add users and cross-site groups to your site using the command line tools or the site's HTML management page.
About Domain Account Mode

If you use Windows SharePoint Services within an organization that uses a Microsoft Windows domain account, you can adopt domain account mode for users and cross-site user group accounts. If you use the domain account model, you can add existing domain account information for users and cross-site groups, including their username and email address, to your site. The domain account mode is the standard mode of Windows SharePoint Services. Note that you can use the Active Directory directory service to manage domain accounts—the two modes differ in the type of account you use, not the tools you use to manage them.
About Active Directory Account Mode

If you manage Windows SharePoint Services-based Web sites for customers on the World Wide Web, you can configure Windows SharePoint Services to automatically create Active Directory directories for new users and cross-site user groups Service account. When you first configure Windows SharePoint Services, you must enable Active Directory account mode. Domain accounts cannot be used when using Active Directory account mode.

Creating users and cross-site groups using Active Directory account mode is the same as creating users with domain account mode, except that you only enter email addresses instead of domains when adding users or cross-site groups to a site account. Windows SharePoint Services checks Active Directory to see if an account with this email address already exists. Use this account if the user or cross-site user group already has an account in Active Directory. If the user or cross-site user group is new, an account is created for that user or user group in Active Directory using Windows SharePoint Services credentials; then the user is notified by email of their account name and password.

Comment

in the Active Directory account mode, certain administrative tasks can not be used in HTML Administration pages. For example, you can't create a top-level site, you can't enable self-service site creation, and you can't add users to a site from the Admin Center page. To perform these operations in Active Directory account mode, you must use the object model.

The Minimum Password Age Group Policy on the domain controller must be set to 0 days. Failure to do so will result in users not being able to change their password unless they have administrator privileges on the server. For more information about setting the Minimum password age group policy, see the Microsoft Windows 2003 Server online help.