When I installed SQL Server, I set the user that starts the SQL Server Service to the Local System account and specified that SQL 2000 should use Mixed Mode for authentication. Under this setup, the SQL Server works fine using both windows authentication and sql server authentication.
My problem started because I want to switch the service startup user to a domain user. When I switch the startup user from LocalSystem to a domain account, SQL Server throws an error stating that it "Cannot Generate an SSPI Context". Therefore I cannot login to the SQL Server using Windows Authentication. If I use SQL Server authentication everything works normally. Changing the startup account back to LocalSystem will allow full access to the SQL Server.
We only have one domain so there are no Cross-domain communitcation issues. The machines trying to connect to the SQL Server are Windows XP (SP1). The domain user account I'm trying to use for service startup is a local administrator on the SQL Server and is in the System Administrators role in SQL Server.
Any help would be appreciated.