We have Netware 6.5 sp7 servers + Zen 6.5, and XP machines with NWclient 491

We are in the process of adding an AD domain, which users will use the
Netware client to login to both....

During the roll out, we want to put all of the clients into the domain, but
have the users still logging into the local workstation and use DLU.

To do this we wanted to use a Nt client Location profile. The locations
would give the netware clients a location which logs the user into a domain
and non-domain.

In the domain enabled location, we set the domain name in the Windows from
tab. The eDir OU is different to prevent users from using the domain
location by mistake, we will place the edir user object in the new OU and
remove their DLU.

The non-domain location if left blank, uses the domain if it was used in the
last login attempt.
To force the client to use the local machine name, not the domain, we placed
LOCALHOST in the Windows from tab. This works well and users do not login to
the domain and login to the local workstation.

Here's the issue...

The user may have to select Workstation only, and login to the local
workstation without the domain.
When the user ticks the workstation only, the domain is filled with
LOCALHOST but the login attempt fails with an error, 'A domain controller
could not be found for the specified domain'

Only by having client advanced settings tab on, and setting the Windows from
to the local workstation name can the use login workstation only.

Any ideas?