1) How does it load balance? Is it some sort of round robin?
No, its more like autofs using NFS with sym links in the Unix world.
Actually, MS-DFS can do load balancing. You can define multiple targets for a DFS link. The client can then pick any of those targets.
However, MS-DFS does nothing to make sure those targets are identical. It is up to the administrator to make sure the targets stay synchronized.
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