Without much ado, here you go….

Steps:

1. Configure MSCS or simply cluster the two servers

Cluster node 1
From cluster node 1, open Cluster Administrator by clicking on Start\All Programs\Administrative Tools\Cluster Administrator. Select Create New Cluster from the pull down menu and click OK. This will open the New Cluster wizard.

Select the cluster name (CLUSTERNAMEYOUWANT); then click next. Verify Node 1’s computer name is selected. Click Next. Cluster configuration will begin. Once cluster analysis is complete, click Next, and you will be asked to input an IP address. This is the cluster IP address that cluster management will use to connect to the cluster. Use the IP address of yourcustomipadd.  Next, enter the Cluster Service account credentials that were created in the beginning of this paper. UID = yourclusteraccount and Password = yourpassword. Click next, and cluster analysis will begin to check for validity (

Once the task is complete, click next followed by Finish. This will launch the Cluster Administrator console. Expand the window. Under Groups, you will see two groups, one called Cluster Group and another one called Group 0.

Cluster node 2
Open Cluster Administrator from Start\All Programs\Administrative Tools\Cluster Administrator; select Add Nodes to Cluster and input the Cluster Name (YOURCLUSTERNAME). This will start the Add Nodes to Cluster wizard. In the Select Computers window, verify that node 2 is selected and click Add, then Next. Once Cluster Analysis is complete with no errors, click next. You will then be asked for the Cluster User credentials. Input them here. Cluster ID = yoursqlclusteracct and Password = yourpassword. Click next, and cluster analysis will begin. Click Next, then Finished. The Cluster Administrator window will appear. Expand Node1 and Node2. Highlight Active Groups from Node1 and verify that it contains both Cluster Group and SQL Resources. This essentially says that cluster node 1 has control of both groups and its resources. In other words, cluster node 1 has access to Q: (Quorum LUN), and cluster node 2 has no access. To test this, open up My Computer from cluster node 2. You will not see any drives other than your local C: drive.

Private network (heartbeat) configuration
Open Cluster Administrator. On the left pane window, expand Networks and right click the Private Network.  When the Private Properties window opens, place a check mark on Enable this network for cluster use and select Internal cluster communication only (Private communication). This ensures that all cluster communication occurs on the dedicated private network. Now, right click the Public Network. This time, instead of “Internal cluster communication only”, select All Communications. Click OK. In Cluster Administrator, right click the cluster name (YOURCLUSTERNAME) and select Properties. Select the Network Priority tab and be sure the Private Network is first, followed by the Public. This ensures the Cluster Service will try to communicate via the Private network, then the Public network.

Testing failover
From cluster node 1, open Cluster Administrator. Right click Cluster Group and select Move Group. The Cluster Group and all its resources will move to Cluster Node 2. Repeat this for the ClusterIIS and all its resources. Now, from Cluster Node 1, try to access the disk drives Q: (Quorum) and R: (Data). You will get “Access Denied.” Move all groups and resources back to Cluster Node 1.

2. Install SQL Server 2008 Failover cluster installation on 1st Server

Setup operations for SQL Server failover clustering have changed in this release. To install or upgrade a SQL Server failover cluster, you must run the Setup program on each node of the failover cluster. To add a node to an existing SQL Server failover cluster, you must run SQL Server Setup on the node that is to be added to the SQL Server failover cluster instance. Do not run Setup on the active node to manage the other nodes.
Follow these steps to create a failover cluster instance.

Prerequisites
Before you begin, review the following SQL Server Books Online topics:
• Planning a SQL Server Installation
• Before Installing Failover Clustering
• Security Considerations for a SQL Server Installation
• If you are installing SQL Server 2008 on operating systems earlier than Windows Server 2008, make sure that you also read and explicitly follow instructions in the Recommended private “Heartbeat” configuration on a cluster server Knowledge Base article.
 Note:
Take note of the location of the shared drive in the Cluster Administrator before you run SQL Server Setup. You must have this information to create a new failover cluster.
• Setup does not install .NET Framework 3.5 SP1 on a clustered operating system. You must install .NET Framework 3.5 SP1 before you run Setup.

Important   You may have to apply cumulative updates to the original media before you install SQL Server 2008, if you are affected by a known issue in the Setup program. For more information about known issues and detailed instructions, see How to update SQL Server 2008 Setup by running a newer version of the SQL Server 2008 Setup support files.

To install a new SQL Server 2008 failover cluster using Integrated Install with Add Node.
1. Insert the SQL Server installation media, and from the root folder, double-click Setup.exe. To install from a network share, browse to the root folder on the share, and then double-click Setup.exe. For more information about how to install prerequisites, see Before Installing Failover Clustering. You may be asked to install the prerequisites, if they are not previously installed.
2. Windows Installer 4.5 is required, and may be installed by the Installation Wizard. If you are prompted to restart your computer, restart and then start SQL Server 2008 Setup again.
3. After prerequisites are installed, the Installation Wizard starts the SQL Server Installation Center. To create a new cluster installation of SQL Server 2008, click New SQL Server failover cluster installation on the installation page
4. The System Configuration Checker runs a discovery operation on your computer. To continue, click OK. You can view the details on the screen by clicking Show Details, o5. On the Setup Support Files page, click Install to install the Setup support files.r as an HTML report by clicking View detailed report.
5. On the Setup Support Files page, click Install to install the Setup support files.
6. The System Configuration Checker verifies the system state of your computer before Setup continues. After the check is complete, click Next to continue. You can view the details on the screen by clicking Show Details, or as an HTML report by clicking View detailed report.
7. On the Product key page, indicate whether you are installing a free edition of SQL Server, or whether you have a PID key for a production version of the product. For more information, see Editions and Components of SQL Server 2008.
8. On the License Terms page, read the license agreement, and then select the check box to accept the license terms and conditions. Click Next to continue. To end Setup, click Cancel.9. On the Feature Selection page, select the components for your installation. A description for each component group appears in the right pane after you select the feature name. You can select any combination of check boxes, but only the Database Engine and Analysis Services support failover clustering. Other selected components will run as a stand-alone feature without failover capability on the current node that you are running Setup on.
You can specify a custom directory for shared components by using the field at the bottom of this page. To change the installation path for shared components, either update the path in the field provided at the bottom of the dialog box, or click the ellipsis button to browse to an installation directory. The default installation path is C:\Program Files\Microsoft SQL Server\.
9. On the Feature Selection page, select the components for your installation. A description for each component group appears in the right pane after you select the feature name. You can select any combination of check boxes, but only the Database Engine and Analysis Services support failover clustering. Other selected components will run as a stand-alone feature without failover capability on the current node that you are running Setup on.
You can specify a custom directory for shared components by using the field at the bottom of this page. To change the installation path for shared components, either update the path in the field provided at the bottom of the dialog box, or click the ellipsis button to browse to an installation directory. The default installation path is C:\Program Files\Microsoft SQL Server\.
10. On the Instance Configuration page, specify whether to install a default or a named instance. For more information, see Instance Configuration.
SQL Server Network Name — Specify a network name for the new SQL Server failover cluster. This is the name that is used to identify your failover cluster on the network.
 Note:
This is known as the virtual SQL Server name in earlier versions of SQL Server failover clusters.
Instance ID — By default, the instance name is used as the Instance ID. This is used to identify installation directories and registry keys for your instance of SQL Server. This is the case for default instances and named instances. For a default instance, the instance name and instance ID would be MSSQLSERVER. To use a nondefault instance ID, select the Instance ID box and provide a value.
 Note:
Typical stand-alone instances of SQL Server 2008, whether default or named instances, do not use a nondefault value for the Instance ID box.
Instance root directory — By default, the instance root directory is C:\Program Files\Microsoft SQL Server\. To specify a nondefault root directory, use the field provided, or click the ellipsis button to locate an installation folder.
Detected SQL Server instances and features on this computer – The grid shows instances of SQL Server that are on the computer where Setup is running. If a default instance is already installed on the computer, you must install a named instance of SQL Server 2008. Click Next to continue.
11. The Disk Space Requirements page calculates the required disk space for the features that you specify, and compares requirements to the available disk space on the computer where Setup is running. For more information, see Disk Cost Summary.
12. Use the Cluster Resource Group page to specify the cluster resource group name where SQL Server virtual server resources will be located. To specify the SQL Server cluster resource group name, you have two options:
• Use the drop-down box to specify an existing group to use.
• Type the name of a new group to create. Be aware that the name “Available storage” is not a valid group name.
13. On the Cluster Disk Selection page, select the shared cluster disk resource for your SQL Server failover cluster. The cluster disk is where the SQL Server data will be put. More than one disk can be specified. The Available shared disks grid displays a list of available disks, whether each is qualified as a shared disk, and a description of each disk resource. Click Next to continue.
14. On the Cluster Network Configuration page, specify the network resources for your failover cluster instance:
• Network Settings — Specify the IP type and IP address for your failover cluster instance.
Click Next to continue.
15. Use this page to specify Cluster Security Policy.
• Windows Server 2008 and later versions – Service SIDs (server security IDs) are the recommended and default setting. The option to specify domain groups is available but not recommended. For information about service SIDs functionality on Windows Server 2008, see Setting Up Windows Service Accounts.
• On Windows Server 2003, specify domain groups for SQL Server services. All resource permissions are controlled by domain-level groups that include SQL Server service accounts as group members.
Click Next to continue.
16. Work flow for the rest of this topic depends on the features that you have specified for your installation. You might not see all the pages, depending on your selections (Database Engine, Analysis Services, Reporting Services).
17. On the Server Configuration — Service Accounts page, specify login accounts for SQL Server services. The actual services that are configured on this page depend on the features that you selected to install.
You can assign the same login account to all SQL Server services, or you can configure each service account individually. The startup type is set to manual for all cluster-aware services, including full-text search and SQL Server Agent, and cannot be changed during installation. Microsoft recommends that you configure service accounts individually to provide least privileges for each service, where SQL Server services are granted the minimum permissions they have to have complete their tasks. For more information, see SQL Server Configuration – Service Accounts and Setting Up Windows Service Accounts.
To specify the same logon account for all service accounts in this instance of SQL Server, provide credentials in the fields at the bottom of the page.
Security Note   Do not use a blank password. Use a strong password.
When you are finished specifying login information for SQL Server services, click Next.
18. Use the Server Configuration – Collation tab to specify nondefault collations for the Database Engine and Analysis Services. For more information, see SQL Server Configuration – Collation.

19. Use the Database Engine Configuration — Account Provisioning page to specify the following:
• Security Mode – select Windows Authentication or Mixed Mode Authentication for your instance of SQL Server. If you select Mixed Mode Authentication, you must provide a strong password for the built-in SQL Server system administrator account.
After a device establishes a successful connection to SQL Server, the security mechanism is the same for both Windows Authentication and Mixed Mode. For more information, see Database Engine Configuration – Account Provisioning.
• SQL Server Administrators – You must specify at least one system administrator for the instance of SQL Server. To add the account under which SQL Server Setup is running, click Add Current User. To add or remove accounts from the list of system administrators, click Add or Remove, and then edit the list of users, groups, or computers that will have administrator privileges for the instance of SQL Server. For more information, see Database Engine Configuration – Account Provisioning.
When you are finished editing the list, click OK. Verify the list of administrators in the configuration dialog box. When the list is complete, click Next.
20. Use the Database Engine Configuration – Data Directories page to specify nondefault installation directories. To install to default directories, click Next.
 Important:
If you specify nondefault installation directories, make sure that the installation folders are unique to this instance of SQL Server. None of the directories in this dialog box should be shared with directories from other instances of SQL Server. The data directories should be located on the shared cluster disk for the failover cluster.
21. For more information, see Database Engine Configuration – Data Directories.
22. Use the Database Engine Configuration – FILESTREAM page to enable FILESTREAM for your instance of SQL Server. For more information about FILESTREAM, see Database Engine Configuration – Filestream. Click Next to continue.
23. Use the Analysis Services Configuration — Account Provisioning page to specify users or accounts that will have administrator permissions for Analysis Services. You must specify at least one system administrator for Analysis Services. To add the account under which SQL Server Setup is running, click Add Current User. To add or remove accounts from the list of system administrators, click Add or Remove, and then edit the list of users, groups, or computers that will have administrator privileges for Analysis Services. For more information, see Analysis Services Configuration – Account Provisioning.
When you are finished editing the list, click OK. Verify the list of administrators in the configuration dialog box. When the list is complete, click Next.

24. Use the Analysis Services Configuration — Data Directories page to specify nondefault installation directories. To install to default directories, click Next.
 Important:
If you specify nondefault installation directories, make sure that the installation folders are unique to this instance of SQL Server. None of the directories in this dialog box should be shared with directories from other instances of SQL Server. The data directories should be located on the shared cluster disk for the failover cluster.
25. For more information, see Analysis Services Configuration – Data Directories.
26. Use the Reporting Services Configuration page to specify the kind of Reporting Services installation to create. For failover cluster installation, the option is set to Unconfigured Reporting Services installation. You must configure Reporting Services services after you complete the installation.
27. On the Error and Usage Reporting page, specify the information that you want to send to Microsoft that will help improve SQL Server. By default, options for error reporting and feature usage are disabled. For more information, see Error and Usage Report Settings.
28. The System Configuration Checker runs one more set of rules to validate your configuration with the SQL Server features that you have specified.
29. The Ready to Install page displays a tree view of installation options that were specified during Setup. To continue, click Install.
30. During installation, the Installation Progress page provides status so that you can monitor installation progress as Setup continues.
 31. After installation, the Complete page provides a link to the summary log file for the installation and other important notes. To complete the SQL Server installation process, click Close.
32. If you are instructed to restart the computer, do so now. It is important to read the message from the Installation Wizard when you have finished with Setup. For information about Setup log files, see How to: View SQL Server Setup Log Files.
33. To add nodes to the single-node failover you just created, run Setup on each additional node and follow the steps for AddNode operation. For more information, see How to: Add or Remove Nodes in a SQL Server Failover Cluster (Setup).
 Note:
If you are adding more than one node, you can use the configuration file to deploy the installations. For more information, see How to: Install SQL Server 2008 Using a Configuration File.
The SQL Server edition you are installing must match across all the nodes in a SQL Server failover cluster. When you add a new node to an existing SQL Server failover cluster, make sure that you specify that the edition matches the edition of the existing failover cluster. 
 
3. Install SQL Server 2008 Add Node installation

How to: Add or Remove Nodes in a SQL Server Failover Cluster (Setup)
Use this procedure to manage nodes to an existing SQL Server failover cluster instance.
 Important:
To update or remove a SQL Server failover cluster, you must be a local administrator with permission to log in as a service on all nodes of the failover cluster. For local installations, you must run Setup as an administrator. If you install SQL Server from a remote share, you must use a domain account that has read and execute permissions on the remote share.
Setup does not install .NET Framework 3.5 SP1 on a clustered operating system. You must install .NET Framework 3.5 SP1 before you run Setup.
You may need to apply cumulative updates to the original media before you install SQL Server 2008, if you are affected by a known issue in the setup program. For more information about known issues and detailed instructions, see .
Note that Setup operations for SQL Server failover clustering have changed in this release. To install or upgrade a SQL Server failover cluster, you must run the Setup program on each node of the failover cluster.
To add a node to an existing SQL Server failover cluster, you must run SQL Server Setup on the node that is to be added to the SQL Server failover cluster instance. Do not run Setup on the active node.
To remove a node from an existing SQL Server failover cluster, you must run SQL Server Setup on the node that is to be removed from the SQL Server failover cluster instance.
  Add Node
  To add a node to an existing SQL Server 2008 failover cluster
1. Insert the SQL Server installation media, and from the root folder, double-click setup.exe. To install from a network share, navigate to the root folder on the share, and then double-click Setup.exe. You may be asked to install the prerequisites if they are not previously installed.
2. Windows Installer 4.5 is required, and may be installed by the Installation Wizard. If you are prompted to restart your computer, restart, and then start SQL Server 2008 Setup.exe again.
3. When prerequisites are installed, the Installation Wizard will launch the SQL Server Installation Center. To add a node to an existing failover cluster instance, click Installation in the left-hand pane. Then, select Add node to a SQL Server failover cluster.
4. The System Configuration Checker will run a discovery operation on your computer. To continue, click OK. Setup log files have been created for your installation. For more information about log files, see How to: View SQL Server Setup Log Files.
5. On the Product key page, specify the PID key for a production version of the product. Note that the product key you enter for this installation must be for the same SQL Server 2008 edition as that which is installed on the active node.
6. On the License Terms page, read the license agreement, and then select the check box to accept the licensing terms and conditions. To continue, click Next. To end Setup, click Cancel.
7. The Installation Wizard will install SQL Server prerequisites if they are not already on the computer. They include the following:
• SQL Server Setup Support Files
To install prerequisites, click Install.
8. The System Configuration Checker will verify the system state of your computer before Setup continues. After the check is complete, click Next to continue.
9. On the Cluster Node Configuration page, use the drop-down box to specify the name of the SQL Server 2008 failover cluster instance that will be modified during this Setup operation.
10. On the Server Configuration — Service Accounts page, specify login accounts for SQL Server services. The actual services that are configured on this page depend on the features you selected to install. For failover cluster installations, account name and startup type information will be pre-populated on this page based on settings provided for the active node. You must provide passwords for each account. For more information, see SQL Server Configuration – Service Accounts and Setting Up Windows Service Accounts.
 
Security Note   Do not use a blank password. Use a strong password.
When you are finished specifying login information for SQL Server services, click Next.
11. On the Error and Usage Reporting page, specify the information you would like to send to Microsoft that will help to improve SQL Server. By default, options for error reporting and feature usage are enabled. For more information, see Error and Usage Report Settings.
12. The System Configuration Checker will run one more set of rules to validate your computer configuration with the SQL Server features you have specified.
13. The Ready to Add Node page displays a tree view of installation options that were specified during Setup.
14. Add Node Progress page provides status so you can monitor add node progress as Setup proceeds.
15. After installation, the Complete page provides a link to the summary log file for the installation and other important notes. To complete the SQL Server installation process, click Close.
16. If you are instructed to restart the computer, do so now. It is important to read the message from the Installation Wizard when you are done with Setup. For information about Setup log files, see How to: View SQL Server Setup Log Files.