Ok, the second issue appears to be corrected by making a setting change on the XP clients.
Control Panel / Administrative Tools / Local Security Policy / Network Security: LAN Manager authentication level / Send NTLMv2 response only refuse LM & NTML.
These settings are present under the Windows Service in Server admin but unticking them does not appear to have the same effect and changing the client setting.
So changing this begs the questions should I perform the steps on all machines that login via the AD domain as well as unbound XP clients?
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