The subject problem can occur if the account is missing its' default SPN (Service Principal Name).

To resolve this problem:

01. Logon to the client computer with local Administrator privileges.

02. Right-click My Computer and press Properties.

03. Windows 2000: Select the Network Identification tab and press Properties.
    Windows XP:   Select the Computer Name tab and press Change.
04. Press the More button.

05. If the Change primary DNS suffix when domain membership changes box is NOT checked, proceed to step 09.

06. Uncheck the Change primary DNS suffix when domain membership changes box.

07. Press OK, OK, OK, and NO.

08. Repeat steps 02 - 04.

09. Check the Change primary DNS suffix when domain membership changes box.

10. Press OK, OK, OK, and Yes.