http://www.microsoft.com/technet/prodtechnol/windowsserver2003/technologies/directory/activedirectory/stepbystep/domcntrl.mspx
note that your ip address should be a static ip address but depending on how you've configured your vmware (i have used vmware NAT so there is a virtual router - ipconfig /all shows me 192.168.232.2 as my Gateway & DNS and DHCP server is 192.168.232.254, i have configured my ip address to be static)
INSTALL DHCP Open Control Panel -> Add/Remove Programs -> Add/Remove Windows Components find Networking Services -> Details (button) Under Subcomponents of Networking Services, check Dynamic Host Configuration Protocol (DHCP), and then click OK. Click Next. If prompted, type the full path to the Windows Server 2003 distribution files, and then click Next. Required files are copied to your hard disk - > installation will complete.
Create a Domain Controller (required for a domain) Start->Run type in dcpromo Create a new AD, in a new Forest