A while back Scott Forsyth wrote this great article on how to use DFS in Windows Server 2003 R2 for content replication in a webfarm.
At ORCS Web, we’ve recently started to use DFS for some of our high availability offerings that use a central NAS (Network Attached Storage) content server. We’re using DFS for handling the content server, both for replication and for automatic failover to a backup server in the event of maintenance or a server failure.
Read the full article DFS for Webfarm Usage – Content Replication and Failover.