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I am setting up an internal AD domain. The company's name is xyz there is already a external domain which the company does not own or is not registered for the company. How should the domain be named? what is the best practice?

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Register and use a top-level domain name that you own. Do not use a domain name that is owned by another entity, not registered, or not a well-known top-level domain. Using a domain name that is owned by another party could make clients susceptible to DNS hijacking. You Active Directory forest name should be a subdomain of your registered top-level domain, e.g. ad.yourdomain.com, or corp.yourdomain.net.

Greg Askew
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