You may face the above mentioned situation when a user tries to log on to a domain while Network Cable is disconnected. This generally happens if the following conditions meet:
- Password Caching is disabled. Check using Registry Editor on the local PC.
- User account is created with different language. Make sure account name which is cached at the local machine has the same as stored in AD.
- Home Folder path in User’s property contains a blank space. Make sure there is no blank space otherwise users can’t log on to the domain.
I will shout more on this if time permits.