Event ID:1030 & 1054 GP not applied

[wills3]

I have a new domain on a windows 2003 server running as a Domain Controller/dns server. There are no other DC's on this domain. There are other domains on this network that have their own settings. My clients are Windows XP Pro.

The clients are set to use the dns server of my new domain.

I am able to join my new domain, search for computers, and Nslookup appears to work. However domain policies are not applied I get a Event ID: 1030 and 1054 in the error logs on the clients. I began trying to debug these problems but can't seem to figure out what is configured wrong on the server.

When I use DCDIAG on the clients or server it reports no problems.

When I use Netdiag I get changing problems.

For this example my domain is called mydomain.local

Netdiag shows host name as computername.different.org
this different.org is the name of the other domain which runs the network and not mydomain.local... ??

DC List Test Failed - Error No Browser Servers Found

When I do a Netdiag /test:dclist it passes the test

Some times when I run the netdiag I also get a DNS test failed the DNS registration for computername.mydomain.local is incorrect on all dns servers.

I am not sure what to try next. I am sure it is something I just don't know that I have configured incorrectly.

I'd appreciate your help!

Thanks,

Willard