Microsoft issued hotfix 833734 last year to address the problem and posted an article with details on its Web site...
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at http://support.microsoft.com/default.aspx?scid=kb;en-us;833734. While, the hotfix was only for Windows 2003 Server, this article provides further insight into the exact problem you describe. The Microsoft hotfix is only temporary -- they plan to roll it up in the release of the next Windows 2003 Server service pack. In the meantime, try entering the UPN without the domain name in the user name field. Some users have said that works in Windows 2000 SP4 systems.
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