In Configuration Manager 2007, the DnName (ActiveDirectoryDiscoveryType) element is the distinguished name of the directory object/container that forms the base of the discovery.
This is a distinguished name syntax as described in MSDN documentation about Distinguished Names (http://go.microsoft.com/fwlink/?LinkId=111721).
The string can use environment variables.
The DnName element is defined by the ActiveDirectoryDiscoveryType Complex Type complex type.
<xs:element name="DnName" type="DnNameType" />
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