SYSTEM: OES2sp2 all post patches
Workstation: Windows 7

Every workstation I join to the domain keeps generating the following error in the messages log file.

xadsd: [NETLOGON] Workstation CH-C-TA-097010 failed to authenticate: 0xc0000022
xadsd: [NETLOGON] CH-C-TA-097010$ opened secure channel

I have verified time is in sync between the server and workstation. The "DEFAULT PASSWORD POLICY" is assigned to the computer OU and has no restrictions. It allows all characters, case sensitive, and change password every 42 days

Below is part of the messages log file from joining the domain to first login.

Jan 7 11:37:04 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client Administrator@DOMAIN.XYZ.COM
Jan 7 11:37:04 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client Administrator@DOMAIN.XYZ.COM
Jan 7 11:37:04 OES-Server winbindd[7345]: [2010/01/07 11:37:04, 0] lib/util_sock.c:write_data(564)
Jan 7 11:37:04 OES-Server winbindd[7345]: write_data: write failure. Error = Broken pipe
Jan 7 11:37:04 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client Administrator@DOMAIN.XYZ.COM
Jan 7 11:37:04 OES-Server xadsd: [DRS] Bound NTDS API client
Jan 7 11:37:04 OES-Server xadsd: [SECURITY] Impersonated user Administrator@DOMAIN.XYZ.COM
Jan 7 11:37:04 OES-Server xadsd: [DRS] DRSCrackNames: failed to crack name DOMAIN\CH-C-TA-097010$[2] to [1]: No such object
Jan 7 11:37:07 OES-Server xadsd: [DRS] Bound NTDS API client
Jan 7 11:37:07 OES-Server xadsd: [SECURITY] Impersonated user Administrator@DOMAIN.XYZ.COM
Jan 7 11:37:07 OES-Server xadsd: [DRS] DRSCrackNames: failed to crack name DOMAIN\CH-C-TA-097010$[2] to [1]: No such object
Jan 7 11:37:08 OES-Server xadsd: [SECURITY] Impersonated user DOMAIN\Administrator
Jan 7 11:37:08 OES-Server [NCPL]: client 999.999.164.16#65496: update 'DOMAIN.XYZ.COM/IN' denied
Jan 7 11:37:08 OES-Server [NCPL]: client 999.999.164.16#65496: update 'DOMAIN.XYZ.COM/IN' denied
Jan 7 11:37:08 OES-Server [NCPL]: client 999.999.164.16#65496: update 'DOMAIN.XYZ.COM/IN' denied
Jan 7 11:37:08 OES-Server [NCPL]: client 999.999.164.16#54575: update 'DOMAIN.XYZ.COM/IN' denied
Jan 7 11:37:08 OES-Server [NCPL]: client 999.999.164.16#54575: update 'DOMAIN.XYZ.COM/IN' denied
Jan 7 11:37:08 OES-Server [NCPL]: client 999.999164.16#54575: update 'DOMAIN.XYZ.COM/IN' denied
Jan 7 11:37:08 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:37:08 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:37:08 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:37:09 OES-Server xadsd: [NETLOGON] Workstation CH-C-TA-097010 failed to authenticate: 0xc0000022
Jan 7 11:37:09 OES-Server xadsd: [NETLOGON] CH-C-TA-097010$ opened secure channel
Jan 7 11:37:09 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:37:12 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client Administrator@DOMAIN.XYZ.COM
Jan 7 11:37:12 OES-Server xadsd: [DRS] Bound NTDS API client
Jan 7 11:37:12 OES-Server xadsd: [SECURITY] Impersonated user Administrator@DOMAIN.XYZ.COM
Jan 7 11:37:15 OES-Server [NCPL]: client 999.999.164.16#59516: update 'DOMAIN.XYZ.COM/IN' denied
Jan 7 11:37:15 OES-Server [NCPL]: client 999.999.164.16#59516: update 'DOMAIN.XYZ.COM/IN' denied
Jan 7 11:37:15 OES-Server [NCPL]: client 999.999.164.16#59516: update 'DOMAIN.XYZ.COM/IN' denied
Jan 7 11:37:18 OES-Server smbd[8862]: [2010/01/07 11:37:18, 0] lib/util_sock.c:read_data(534)
Jan 7 11:37:18 OES-Server smbd[8862]: read_data: read failure for 4 bytes to client 999.999164.16. Error = Connection reset by peer
Jan 7 11:37:19 OES-Server [NCPL]: client 999.999.164.16#57567: update 'DOMAIN.XYZ.COM/IN' denied
Jan 7 11:37:19 OES-Server [NCPL]: client 999.999.164.16#57567: update 'DOMAIN.XYZ.COM/IN' denied
Jan 7 11:37:19 OES-Server [NCPL]: client 999.999.164.16#57567: update 'DOMAIN.XYZ.COM/IN' denied
Jan 7 11:38:31 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:38:31 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:38:31 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:38:31 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:38:31 OES-Server xadsd: [DRS] Bound NTDS API client
Jan 7 11:38:31 OES-Server xadsd: [SECURITY] Impersonated user CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:38:32 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:38:32 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:38:32 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:38:32 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:38:32 OES-Server xadsd: [NETLOGON] Workstation CH-C-TA-097010 failed to authenticate: 0xc0000022
Jan 7 11:38:32 OES-Server xadsd: [NETLOGON] CH-C-TA-097010$ opened secure channel
Jan 7 11:38:32 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:38:33 OES-Server smbd[9422]: [2010/01/07 11:38:33, 0] smbd/nttrans.c:call_nt_transact_ioctl(2463)
Jan 7 11:38:33 OES-Server smbd[9422]: call_nt_transact_ioctl(0x1401c4): Currently not implemented.
Jan 7 11:38:37 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:38:37 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:38:38 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:38:38 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client CH-C-TA-097010$@DOMAIN.XYZ.COM
Jan 7 11:38:43 OES-Server smbd[9422]: [2010/01/07 11:38:43, 0] lib/util_sock.c:read_data(534)
Jan 7 11:38:43 OES-Server smbd[9422]: read_data: read failure for 4 bytes to client 999.999164.16. Error = Connection reset by peer
Jan 7 11:38:47 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client Administrator@DOMAIN.XYZ.COM
Jan 7 11:38:48 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client Administrator@DOMAIN.XYZ.COM
Jan 7 11:38:48 OES-Server xadsd: [DRS] Bound NTDS API client
Jan 7 11:38:48 OES-Server xadsd: [SECURITY] Impersonated user Administrator@DOMAIN.XYZ.COM
Jan 7 11:38:48 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client Administrator@DOMAIN.XYZ.COM
Jan 7 11:38:48 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client Administrator@DOMAIN.XYZ.COM
Jan 7 11:38:48 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client Administrator@DOMAIN.XYZ.COM
Jan 7 11:38:48 OES-Server krb5kdc: [KDC] Regenerating authorization data for cross-realm client Administrator@DOMAIN.XYZ.COM
Jan 7 11:39:20 OES-Server xadsd: [DRS] Bound NTDS API client
Jan 7 11:39:20 OES-Server xadsd: [SECURITY] Impersonated user Administrator@DOMAIN.XYZ.COM
Jan 7 11:39:22 OES-Server xadsd: [NETLOGON] Workstation CH-C-TA-097010 failed to authenticate: 0xc0000022
Jan 7 11:39:22 OES-Server xadsd: [NETLOGON] CH-C-TA-097010$ opened secure channel
Jan 7 11:39:25 OES-Server smbd[9883]: [2010/01/07 11:39:25, 0] lib/util_sock.c:read_data(534)
Jan 7 11:39:25 OES-Server smbd[9883]: read_data: read failure for 4 bytes to client 999.999164.16. Error = Connection reset by peer