Distributed File System (DFS) has been around since Windows NT and comes in a variety of configurations and options. While DFS is available in standalone and domain configurations, this article will specifically discuss the domain option. DFS is a popular and effective technology that provides redundant replication of files and folders between remote servers. It can be organized under a common namespace to allow users to connect without needing the name of the server that the DFS share is hosted on.

--> The rest is on the blog :
http://redmondmag.com/articles/2011/02/01/dfs-best-practices.aspx