I am trying to install a single server SharePoint farm (connected to the domain), using Microsoft SQL Standard 2005. Active Directory resides on a different server.
As i am using the principle of least privilege, I have setup some local accounts for SQL and file permissions (working fine).
The problem that I am having is I can't add an active directory users as a site collection administrators in the UI, only local users.
Do I need to setup the farm using an Active Directory User? To get access to querying Active Directory Users?
You mentioned that you used local accounts for SQL, which is fine, but the SharePoint Setup and Server Farm accounts must be domain accounts, or SharePoint will not be able to talk to the domain which will hamper your ability to add AD users. The following guide on TechNet covers the specifics of installing Office SharePoint Server 2007 with least privilege administration: http://technet.microsoft.com/en-us/library/cc298465.aspx