Kerberos login creates ticket, then error.

Today I setup a third 10.4 server on my network to act as a file server. A DNS entry was created for the server, static IP assigned, and I bound it to our active directory as a standalone server. It pulls users and groups from the Active Directory domain perfectly, and I was able to assign a sharepoint with owner and group from the AD domain. changeip -checkhostname checks out ok. No DNS error, the IP address and DNS match. When I attempt to connect to another Mac server (also bound to the Active Directory domain) from this Mac, a kerberos login prompt appears. Once I login, I immediately get an error: "Connection Failed Unknown user, incorrect password, or login is disabled. Please retype the name and password or contact the server's administrator." Subsequent attempts show this same error. If I open the kerberos utility and destroy the kerberos ticket, reconnect but then bypass the kerberos login (hitting escape) and login using DHX2, I can connect. I examined the realm info using the kerberos utility in coreservices, the realm info appears correct, its listed as the same name as my domain but all in CAPS which I believe is correct. (DOMAIN.COM) Under the Servers listing I see two of my servers listed, both under kdc with port 88 and both servers under admin with port 749. I see a ticket created in ticket cache, and entries under the Tickets below this for each server I attempt to connect to. Any attempt to connect to a Mac server creates a ticket, but with the same error code. thanks in advance for your time.