Event ID 1054 in XP

This is usually a DNS issue.  Double check the Primary DNS server is one of your Active Directory Controllers.

From a command prompt see if you can resolve the domain name
nslookup myADdomain.name

you can also run gpresult from the command line to see other group policy errors.

Try these things and post back here with results.

I suspected DNS as wMicrosoft Windows XP [Version 5.1.2600]
(C) Copyright 1985-2001 Microsoft Corp.

C:\Documents and Settings\Bonny.TCA>nslookup tca.local
Server:  tca-fs1.tca.local
Address:  192.168.1.254

Name:    tca.local
Addresses:  192.168.1.248, 192.168.1.254, 192.168.2.254, 192.168.1.100


C:\Documents and Settings\Bonny.TCA>gpresult

Microsoft (R) Windows (R) XP Operating System Group Policy Result tool v2.0
Copyright (C) Microsoft Corp. 1981-2001

Created On 11/1/2011 at 4:03:58 PM


RSOP results for TCA\bonny on N-BED1 : Logging Mode
----------------------------------------------------

OS Type:                     Microsoft Windows XP Professional
OS Configuration:            Member Workstation
OS Version:                  5.1.2600
Domain Name:                 TCA
Domain Type:                 Windows 2000
Site Name:                   Default-First-Site-Name
Roaming Profile:
Local Profile:               C:\Documents and Settings\Bonny.TCA
Connected over a slow link?: Yes


COMPUTER SETTINGS
------------------
    CN=N-BED1,CN=Computers,DC=tca,DC=local
    Last time Group Policy was applied: 11/1/2011 at 3:28:59 PM
    Group Policy was applied from:      ESS-FS1.tca.local
    Group Policy slow link threshold:   500 kbps

    Applied Group Policy Objects
    -----------------------------
        N/A

    The following GPOs were not applied because they were filtered out
    -------------------------------------------------------------------
        Local Group Policy
            Filtering:  Not Applied (Empty)

    The computer is a part of the following security groups:
    --------------------------------------------------------
        BUILTIN\Administrators
        Everyone
        NT AUTHORITY\Authenticated Users


USER SETTINGS
--------------
    CN=Bonny Trahan,OU=Pinnacle Users,DC=tca,DC=local
    Last time Group Policy was applied: 11/1/2011 at 3:29:36 PM
    Group Policy was applied from:      TCA-FS1.tca.local
    Group Policy slow link threshold:   500 kbps

    Applied Group Policy Objects
    -----------------------------
        Default Domain Policy

    The following GPOs were not applied because they were filtered out
    -------------------------------------------------------------------
        Local Group Policy
            Filtering:  Not Applied (Empty)

    The user is a part of the following security groups:
    ----------------------------------------------------
        Domain Users
        Everyone
        Debugger Users
        BUILTIN\Administrators
        BUILTIN\Users
        NT AUTHORITY\INTERACTIVE
        NT AUTHORITY\Authenticated Users
        LOCAL

C:\Documents and Settings\Bonny.TCA>

ell, but I can resolve names to ip's in the cmd prompt..

I just looked at 3 other workstations they have the same error. They were not getting double emails so not sure if this is an "acceptable error" or not. Now Im not even sure if that had anything to do with this PC getting double emails..Some more info that may help you is even though these PC's log on to the tca domain. the actual servers are at another location 4 miles away.