Yeah if the local account credentials match on the non-domain machine to what the domain credentials are then it will pass authentication.
"when i go to a remote system, does it look at the local account first, see if it can authenticate, and if it cant, then prompt?"
Yes I believe the process you mentioned is how it works.
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by: KCTSPosted on 2009-10-27 at 18:40:29ID: 25679331
This is normal - it checks the credentials against matching credentials in the domain to allow it to access shares in a workgroup like fashion