I am trying to add a domain user. I am doing the following.

1. Expand Security
2. Right click on Logins
3. Select New Login...
4. Login name select search
5. Click on location and select entire directory
6. Type username
7. Click checkname
8. The name goes underlined and add some more info
9. Click OK
10. Click OK

I then get the following error:

I have found http://support.microsoft.com/kb/324321.

• The Login does exist
• There is no Duplicate security identifiers
• Authentication failure I don't think is happening as I can browse AD
• Case sensitivity should not be the problem as I am doing the checkname and it is correcting it.
• Not a Local account
• Name resolution again I can see the AD

I have rebooted the server (VM) and the issue is still happening. Any ideas?

Edit

I have also:

• Domain member: Digitally encrypt secure channel data (when possible) – Disable this policy
• Domain member: Digitally sign secure channel data (when possible) – Disable this policy
• Rebooted server

http://talksql.blogspot.com/2009/10/windows-nt-user-or-group-domainuser-not.html

Edit 2

I have also:

• Digitally encrypt or sign secure channel data (always)- Disabled
• Rebooted

Edit 3

Since the question have moved site I no longer haves access to comment etc...

I have checked the dns on the server to a machine where it is working. The DNS servers are the same on both...