***Calling all SMS experts***

You need to ensure that Windows Networking logon client is enabled, you don't have to modify script but the service must be on.

Also make sure you specified the domain name

For good measure I enable Windows Networking logon discovery as well
Andy

There is no short way to answer this in lieu of calling MS Tech Support. I had this same problem, I ended up doing what I'm about to tell you and it finally worked without ANY problems. First off, you'll need to SP2 your installation. Read the instructions carefully as there are some hitches. Make sure all of the SMS services are running on that PDC. Under Site Hierarchy-Site Systems, verify that the PDC is in addition to CAP (Client Access Point) and some others, that it is indeed a Logon Server as well. This will be listed along with the others. If you don't see it, be prepared to spend a ton of time either troubleshooting it over the phone or re-installing. I chose re-installing. Here's the steps:
1. Run Setup and uninstall site.
2. Open REGEDIT and delete the followings keys under HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\, SMS, NAL, WBEM, and NM.
3. Delete the local and domain accounts created with SMS.
4. Delete the SMS folder, and REBOOT. You'll get the standard "..may impact on or more registered

...to continue my previous post.
5) Open regedit again and drill down to \HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services and delete any key starting with SMS.
6) Reboot, and try installing it again. It worked for me.
The SP2 is highly recommended!!!