The account locked out is a domain users and I am a domain admin on my Win7 box which is joined to the domain. DNS is working fine. As far I can tell the only issue is reguarding user account lockouts. If I hit F5 a few times then it might fill in the approperiate check marks.
When I have a domain account that's locked out and I open that account through AD Users and Computers it doesn't show it as locked. If I go to XP workstation everything is display accuracily. Our DC are running Windows Server 2003 and my Win7 workstation is Ultimate.