Clients can’t validate to BDC????

I am having a bit of an issue with my BDC validating user logons.

My site configuration is as follows.

Single domain PDC and Exchange server in 1 location, BDC, SQL, IIS, NT4.0 dev and WIN2K Development servers in 2nd location connected via 1.5mbps T1 vpn.

Problem:

all clients in location 2 don’t validate to local BDC, they validate to PDC across WAN link, unless netlogon service on PDC is stopped, then they will log in to BDC.

I have tried using an lmhosts file, but this does not work. BDC and member server resources are available after logon.

just a thought!!! Is there a way to disable netlogon service on PDC only for clients in location 2???

Any help will be appreciated