OID and Active Directory LDS

Our Active Directory administrators have proposed that we interface OID with Active Directory Lightweight Directory Service (ADLDS) rather than directly with our AD domain controllers.  In other words, the OID password filter plugin (oidpwdcn.dll) would be installed on ADLDS and the schema extension to store the password hash would be made in ADLDS.  Is this type of configuration supported?  Is it a typical configuration, and are there any pitfalls or problems experienced by customers using it?

Thanks!