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6.4.2 Group Nesting 
Group nesting refers to placing one group in another, so that the group becomes a member of parent group. 
Groups can be nested to help consolidate large numbers of user and computer accounts to reduce replication 
traffic. The type of nesting you can perform is determined by the domain functional level of the domain. 
If the domain functional level is set to the Windows 2000 native domain functional level or the Windows 
Server 2003 domain functional level, groups can have the following members: 
Domain local groups can contain other domain local groups in the same domain, global groups from 
any domain, universal groups from any domain, user accounts from any domain, and computer accounts 
from any domain. 
Global groups can contain other global groups in the same domain, user accounts in the same domain, 
and computer accounts in the same domain. 
Universal groups can contain other universal groups from any domain, global groups from any domain, 
user accounts from any domain, and computer accounts from any domain. 
If the domain functional level is set to the Windows 2000 mixed domain functional level, distribution groups 
can have the same membership as in the to the Windows 2000 native domain functional level or the 
Windows Server 2003 domain functional levels. 
If the domain functional level is set to the Windows 2000 mixed domain functional level, security groups 
can have the following members: 
Domain local groups can contain other global groups from any domain, user accounts from any domain, 
and computer accounts from any domain. 
Global groups can contain user accounts in the same domain and computer accounts in the same domain. 

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