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Question: We purchased a white box (Intel Core2 duo with Intel motherboard) server from a local OEM who preinstalled Small Business Server 2003 R2. After finishing the setup, DHCP and DNS work well but AD seems to have some issues. We tried to "manually" join an XP Pro system to our business.local domain but get the message:
The following error occured attempting to join the domain "business.local"
The network path was not found.
The application event log on the server showed event 1030 and event 1058. We followed links on these events to Knowledge Base article 888943 about Group Policy, installed support tools, and used the ADSIedit.msi snapin. This showed us the gPCFileSysPath was correct.

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Yes, you do set up the user and computer on the SBS server. Follow the To-Do list for completing your installation... that's actually about 50% of the job right there (the other 50% being the main, integrated installation of the OS). You'll run the Add-User wizard which chains into the Add-Computer wizard. You can choose to add the computer accounts at that time (which will automatically assign the user to that computer when you run the connectcomputer wizard) or you can add them later... just make sure you do that before joining them to the domain, and always use the connectcomputer method to join.

"it is difficult to debug an install when the management is wizard driven"

Actually, it's quite easy to debug an install when you use the wizards.

First, this is one product that you MUST RTFM! Really!
You'll find the basic guide at Microsoft TechNet: Windows Small Business Server 2003 with Service Pack 1 Getting Started Guide, and I'd also recommend that you take a look at these two books:
Amazon.com: Windows Small Business Server 2003 Best Practices (Harry Brelsford's SMB): Books: Harry Brelsford and Amazon.com: Microsoft Small Business Server 2003 Unleashed: Books: Eriq Neale

Secondly, there are TONS of log files that will help you see exactly what the wizards did.
The main location for log files is C:\Program Files\Microsoft Windows Small Business Server\Support
But, you'll also find plenty of others in the other folders in C:\Program Files\Microsoft Windows Small Business Server
These are generally the first place to look when you get an error when running a wizard.

And, remember... the Wizards are really just gui scripts. The last screen of each wizard tells you EXACTLY what it's about to do. The log files will tell you which commands it ran. FYI, the CEICW alone runs over 500 command lines... that definitely isn't something you want to do manually!