Actually, you might be dead on. Having services that ran as local accounts instead of Domain User accounts killed a lot of functionality in SQL 2000, so it's entirely possible it's doing it here too.
Make sure the account is a regular Domain User account, though, and not a Domain Admin account.
Let us know if that solves the problem or not, too, if you wouldn't mind.
Catadmin - MCDBA, MCSA
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