Win2k8 - Join Domain and Lose Network Connectivity

Hello Experts,
This problem has been driving me nuts for weeks. After a lot of testing and googling, I'm now posting this problem.

Problem:
Building a new Windows 2008 server to join to a domain that is currently Windows 2000 Native. This is the start of a project to upgrade the domain to Windows 2008. A build of the server goes fine (HP DL380 G5) and is typical. My problem comes in when I join the domain. When joined first and then a reboot to apply everything seems fine. After a second and then additional reboots is when the problem starts. I see the two computers near the clock with a Red X over them. Hovering over them for an error I see: "Connection Status: Unknown. The dependency service or group failed to start." Looking at the server in the System Event Log I see event ID 7024 with, "The Network Location Awareness service terminated with service-specific error 3221226008 (0x0C0000218)."

Attempts to Resolve:
1. I have seen references to a Group Policy issue. To rule this out, I created a new OU and blocked inheritance. I then created the machine account and then join the server to the network. This did not resolve the issue.
2. I have seen this problem reported primarily with Vista. Vista problems are usually solved using the netsh ip reset and netsh winsock reset.
3. I have used the latest network and firmware drivers for the NC373i NICs on the server. I have also tried using older versions of the driver prior to version 4.16. I have seen multiple driver issues that are not directly related to this issue. Both driver sets result with the same problem.
4. Rebuilt with Windows 2008 x64 and 32 bit using SmartStart scripted build. Also rebuilt with straight x64 and 32 bit OS CDs. Problem repeats.

Status:
I have spent countless hours researching this issue. Has anyone encourtered this problem either on Vista or Windows 2008 and resolved it using an alternative method than what I mentioned above?

Thanks for your help. Lots of points on this one!