Permissions to access public queues from a server that is part of domain

Here's a problem I'm running into with AD security and public queues in MSMQ.
I setup the Domain controller + active directory on windows 2003 server in a VM with static ip. Also, installed IIS and MSMQ and created couple public queues.
If I go to Computer management, I can access the public queues on AD+ DC Server.

so, I created a new VM for web server running on windows 2003 and joined this to domain. All went well. and I can also install IIS+ MSMQ on web server.

Now, If I want to access the public queues on Active Directory server , I get this error.

Only public queues cached locally can be displayed. Error: The
object was not found in Active Directory

Seems like a permissions issue. Any pointers as to what I am missing
ChekKusAsked:
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ChekKusAuthor Commented:
found the problem. The issue seems to be happening when logged in remotely.  if done on local, works great.
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