On Windows 2003, we have piloted monitoring a few hundred nodes with DFM. We need to scale this to 1000 nodes and was thinking it may be a good idea to put DFM on its own server since it has a high memory footprint. We want DFM to still import from DCR on the LMS server.
How common is it to split DFM up on a server separate from the rest of LMS and any pitfalls in doing so ?
Very common. This is a smart thing to do, and could actually make DFM more problem-free for you. Configure the DFM-only server as a DCR slave to the main LMS server, and you will have one, replicated device list across both servers.