You have two graphical tools to use at this point, both support most features.  My preference is the DFS Management tool, which is available after the Add/Remove programs step above.  You will find this in Administrative Tools.

There are 3 terms/levels to take note of: Namespace, Folder and Target Folder.  These terminologies changed with R2, so do not get confused with terms you used in the past.

Top Level - Namespace

A namespace is a container to hold the folder and replication settings.  The path to the namespace might be something like \\Domain\Webfarm.  You can have multiple namespaces per server.

Second Level - Folder

A folder is a virtual DFS folder that can have one or more target folders.  The name of the folder is what is used in the UNC path.  For example, \\Domain\Webfarm\Site1 is where Site1 is the Folder.

Third Level - Folder Target

A folder target is the real location of the content.  This path is masked though and not seen in the DFS UNC path.

You can have multiple target folders that point to different physical locations.  There are various options to determine which target folder is used, but in our case we want to always point to a primary content server and only fail over to the backup content server when the primary server is unavailable.

Active Directory comes into play with domain-based namespaces, but management is still done from DFS Management.