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The user belongs to a policy group with domain authentication enabled.
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Make sure that the Host Name and Domain Name are configured properly.
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PolicyServer and all Endpoint Encryption devices using domain authentication are in the same domain.
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The user account is configured in both Active Directory and PolicyServer. The user name is case sensitive and must match exactly.
Additionally, domain authentication has the following limitations:
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Domain authentication cannot be used with a Smart Card PIN.
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Remote Help is available to domain users. However, the domain password must be reset in Active Directory if it is forgotten.