Understanding How Dynamic DNS Updates Work:
DHCP/DNS update interaction for DHCP clients running Windows 2000, Windows XP , or a Windows Server 2003 operating system
DHCP/DNS update interaction for earlier Windows DHCP clients (prior to Windows 2000)
Best Practice:
1) Login to one of the Domain controllers, and open ‘Active Directory Users and Computers’.
2) Add all DHCP servers into the security group named ‘DnsUpdateProxy’.
3) Create a new user account, e.g. dhcp2dns.
4) Login to the DHCP server and launch the DHCP server management console. Then right click the IPv4, and choose Properties.
5) Click DNS tab and enable DNS dynamic update.
6) Go to ‘Advanced’ tab and click ‘Credentials…’
7) Input the user credential created
NOTE:
1) The DNS zone must be ‘Active Directory Integrated’ and only allow secure dynamic updates.
2) The reverse lookup zone should have been created, otherwise it may lead to the DHCP fail to update the DNS server.
3) Verify the owner of the DNS record (should be dhcp2dns in my example) after the change has been applied.