If I understand correctly, this is as if you had to reinstall a Solaris in order to start a NIS+ server, right? Yeah, Microsoft is making enterprise-caliber operating systems, sure!

Yes, that would be correct. But to be fair, this is an issue with an OS approaching 7 years old now. Windows 2000 does not have this type of odd problem in it's design. You can easially switch between Active Directory member and standalone server until your blue in the face with no reload. True it took them a bit, but they are getting better.