I have installed Ultr@VNC 1.0.1 on a Windows 2000 SP4 server and on my WinXP SP1 workstation, configured the server to use MS-Logon II, defaulting to allow the local administrators group full access.
The Active Directory 2000 Domain Admins group has been added to the local administrators group of this server.
Yet, when I connect to this server and use my domain admin credentials, I get this error in the server's Security Event Log:
Date: '12/9/2005'
Time: '1:29:00 PM'
Event: '681'
Type: 'AUDIT FAILURE'
Category: 'Account Logon '
User: 'NT AUTHORITY\SYSTEM'
Source: 'Security'
Computer: 'STNTS27'
Message: 'The logon to account: WOODSML by: MICROSOFT_AUTHENTICATION_PACKAGE_V1_0 from workstation: STNTS27 failed. The error code was: 3221225572 '
Data: ''
It still lets me on and I can do what I need to do, that's not the issue.
Just need to know why this error is generated, and if there's a fix/change that needs to be made to make it stop.
Thanks.
Mark L. Woods
The Solae Company
St. Louis, Missouri USA
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MICROSOFT_AUTHENTICATION_PACKAGE_V1_0
it's not a bug, it's a feature 
Now, seriously: When authenticating to VNC, you specified your username and password, but not your domain.
Windows assumes that this is a local account and tries to authenticate "Workstation\Username" which fails.
The next guess is "Domain\Username" which succeeds.
To prevent the "error" you have to specify the fully qualified name when vnc authenticating:
Either domain\username or username@domain.com (or something similar, that's your UPN, user principal name).
Now, seriously: When authenticating to VNC, you specified your username and password, but not your domain.
Windows assumes that this is a local account and tries to authenticate "Workstation\Username" which fails.
The next guess is "Domain\Username" which succeeds.
To prevent the "error" you have to specify the fully qualified name when vnc authenticating:
Either domain\username or username@domain.com (or something similar, that's your UPN, user principal name).