Our DC is running Windows Server 2003.

I've just set up Windows Server 2008 and have terminal server running on it. When setting the terminal server permissions, it was able to allow a group name that was read from the domain. In the DC the new terminal server shows up as a computer in the domain.

I can also log in as a user within the domain even though that user doesn't exist locally on the new server.

However, when I go to set sharing permissions on the new machine it doesn't show my domain as a location. Instead it is only looking at location "machinename" and not allowing domain to be seen or added. Is there something I'm missing?

Ok, lots of errors in the event log.

We have this:

The winlogon notification subscriber is taking long time to handle the notification event (Logon).

Followed by this:

The winlogon notification subscriber took 121 second(s) to handle the notification event (Logon).

Followed by:

The processing of Group Policy failed because of lack of network connectivity to a domain controller. This may be a transient condition. A success message would be generated once the machine gets connected to the domain controller and Group Policy has succesfully processed. If you do not see a success message for several hours, then contact your administrator.

I think this might be the same problem I'm having http://serverfault.com/questions/24420/primary-domain-controller-slow

Solved. The issue was that I had changed from DHCP to static and put the wrong DNS server IP in. i.e. firewall instead of DC/DNS server.