I recently configured a set of virtual machines for use as my SharePoint demo environment. I used Microsoft Virtual PC 2007 and the differencing disk technique to keep disk space down and maximise re-use.
I created a base Windows Server 2003 virtual hard disk and then proceeded to create two differencing disks from it: one for my domain controller (dc.demo.local) and one for my SharePoint server (sharepoint.demo.local).
After successfully adding the SharePoint server to the domain I got the following error message when attempting to log in using a domain administrator account:
"The name or security ID (SID) of the domain specified is inconsistent with the trust information for that domain"
So it turns out that the SID for both machines are the same since the differencing disks are created off the same base disk.
Luckily it was easy to fix… I Downloaded NewSID from TechNet and ran through the wizard on my SharePoint server. This changed the SID for the machine to a nice shiny random one and rebooted.
Logging in with domain accounts is no longer a problem.