2000/2003 Server FSMO roles and domain controller advice needed...

Here's the problem...

I get the strangest error in Active Directory when I right click on
the domain, go to Properties, and click the Group Policy tab. It says:
"The domain controller for group policy applications is not availible.
You may cancel this operation for this session or retry using one of
the following domain controller choices:
1)The one with the Operations Master token for the PDC emulator
2)Use one of the Active Directory snap-ins
3)Use any availible domain controller"

If I select either number 2 or 3, it works... but number 1 fails.
The problem is causing minor DNS and other errors on the network.

I need it working right. Advice?

Thank you,
Mike.