Had this problem in (IR3) as well. After successfully logging into Novell, it appears that the Client is passing the Novell password to the local Windows user login, which is using a different set of credentials altogether.

We have a generic "User" user defined as the local Windows user account with a standard password. After the Novell portion of the login finishes successfully, instead of being immediately presented with the Windows login as would be expected, we first get an error message ("The local computer username or password is not valid."), and must click 'OK' before the Windows login dialog comes up. After this we are able to correctly log into the workstation using the aforementioned Windows credentials. The intermediate error is a very annoying behavior, however, and we would like it eliminated.

Let me be clear that the Novell Client *IS* retaining the correct Windows username, and after clicking 'OK' through the error message, the correct local account name *IS* populated in the Windows login dialog. It just appears that the Client is trying to pass the Novell login password into the Windows login as well.

Has anyone else run into this? It's almost like a Single Sign-on type of issue, but the usernames are different between Novell and Windows.