Applying GPO to clients

My test enviroment consists of 2 Domain Controllers. One is running DNS. I am also running DHCP with the correct IP address for the DNS server. Doing an IPConfig on the client computer shows the correct DNS information for this test network.

Group policies are not being applied to the client machine. When I run GPresult I get LookupAccount failed with 1789. My research pointed me to Q246108 which DNS is correctly configured on this client machine and it did update the DNS server when booted up.

Any suggestions?