Active Directory is the directory . Active Directory stores All information & it's Common Directory of Network which store All user & Admin Data & use it. Active Directory uses a structured data store as the basis for a logical, hierarchical organization of directory information.
Directory data is stored in the Ntds.dit file on the domain controller. It is recommended that this file is stored on an NTFS partition .for more visit Microsoft official site.
see Here , Active Directory Configuration Steps :- Microsoft in Windows 2003
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