When you try to start the KDC (Kerberos Key Distribution Center) on a Windows 2000 server, you receive Error 1352 - The Security Accounts Manager (SAM) or Local Security Authority (LSA) server was in the wrong state to perform the security operation, and the System event log records:

Event Type: Error
Event Source: Service Control Manager
Event Category: None
Event ID: 7023
Date: 4/12/2001
Time: 1:17:13 PM
User: N/A
Computer:
Description: The Kerberos Key Distribution Center service terminated with the following error:

The Security Accounts Manager (SAM) or Local Security Authority (LSA) server was in the wrong state to perform the security operation.
The KDC can only be started on an Active Directory domain controller.

Make sure that the Startup Type is set to disabled on all member and stand-alone servers.