I was able to find a solution by the way the domain was configured. I was adding the full domain name and extension (i.e. domain.local). The .local was screwing me up. I edited the domain field to only reflect the domain name itself without any extension.
One I did this it worked like a charm. I was using a PPTP VPN on a Server 2003 computer, domain mixed with 2000 and 2003 domain controllers, and Windows 7 Pro laptops. Hope this helps someone.
It is not always about aptitude, but more about attitude.
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