When running the Windows Small Business Server 2011 Standard Migration Preparation Tool it errors out with: “Error is found in DNS Zone domain.local”.
Description: In DNS zone domain.local, your local server is not in the name server records. Migration will fail without fixing this issue. Go to http://support.microsoft.com/kb/2578426 for more details.
When you just follow the link proposed you will find some possible solution for checking if the dns zone is set to Type: Active Directory-Integrated and that Dynamic updates is set to Secure only. Also to make sure on the Name Servers tab the source server is listed with correct name and / or ip address.
All those settings were correct but the error keeps occuring. After some more research I found this thread with the same issue, solution for this thread was contacting microsoft support who complete rebuild the dns zone. With this information I had seen a minor difference with other SBS dns servers.
In this customers DNS server when you take a look within the domain.local forward zone there was no _msdcs entry. There was a _msdcs.domain.local zone, so everything was like this picture accept the record within the red circle was missing.
After noticing that the solution is as follows:
1. First delete the _msdcs.domain.local dns zone (of course it would be wise to start with making a good backup, but this should have been done before you even start with running the migration preparation tool)
2. Create a new primary forward dns zone, _msdcs.domain.local
3. Open a command prompt and run ipconfig /registerdns
4. Last restart the net logon service. After restaring the net logon service all the _msdcs.domain.local and the _mcdcs record are automatically recreated.
Re-run the migration preparation tool and the error was gone.
Update: There has now been a official SBS Team post on this issue, read here for additional information.