ZCM 11.2 and 11.2.1

ZCM 11 installed on windows server 2008 R2
Windows 7 64 users client NC2 4 and NC2 4a
Authenticating to Suse 11 OES 11 server

When a new user (student) logs into a workstation the user is created, the user does login, but then an error shows up that "You are already logged on as .user.vps do you still want to login. You can click no. and then retype the username and it finds the name just fine via contextless. This essentially creates a double login issue. Not bad if it is a permanent DLU, but a real pain in the rear for volitile dynamic users.

So it appears as if the user was created and authenticated, but then is trying to authenticate again. I do notice that the user context is incorrect. For instance students are actually located in:
.HS.students.vps so it should be .johndoe.hs.students.vps and the error indicates .johndoe.vps

Is this and ldap issue? A client issue? I did not have this problem with 11.2 before my ZCM server crashed. I now have a fresh install of ZCM 11 but on a windows box instead of directly on my suse 11 with oes11.