error code = 3

Have installed 2000 Adv. Server and am getting a couple of errors in my application event logs.

Security policy cannot be propagated. Cannot access the template. Error code = 3

The Group Policy client-side extension Security was passed flags (17) and returned a failure status code of (3).

Went to Microsoft support, was told it involved my time server. Tried the solutions (net time /setsntp:ntp2.usno.navy.mil)to tie it to their server. Then ran (NET TIME \\ /SET /Y), stopped and restarted file replications service. Errors are still there.
What am I doing wrong. I ran these from the Start:Run box. Is this right?
Thanks