samba - Jun 2008 - Failed to join domain: failed to set machine spn: Operations error Win 2k8 samba 3.2.0rc2

Hello,

I'm trying to join Samba 3.2.0rc2 with Windows 2008 domain.

Net ads join returns:
Failed to join domain: failed to set machine spn: Operations error

Tried to use ktpass and keytab, but it also failed. Tried googling failed to set
machine spn, but got no results.

What else could I try ?

Some more debug info:

-d 10 output (replaced domain and domain sid):

[2008/06/30 13:38:10, 10] libsmb/smb_signing.c:get_sequence_for_reply(80)
  get_sequence_for_reply: found seq = 41 mid = 23
[2008/06/30 13:38:10, 10] libsmb/smb_signing.c:simple_packet_signature(270)
  simple_packet_signature: sequence number 41
[2008/06/30 13:38:10, 10]
libsmb/smb_signing.c:client_check_incoming_message(419)
  client_check_incoming_message: seq 41: got good SMB signature of
[2008/06/30 13:38:10, 10] lib/util.c:dump_data(2179)
  [000] AE ED 75 69 D2 DB B3 41                           ..ui...A
[2008/06/30 13:38:10,  1] libnet/libnet_join.c:libnet_Join(1752)
  libnet_Join:
      libnet_JoinCtx: struct libnet_JoinCtx
          out: struct libnet_JoinCtx
              account_name             : NULL
              netbios_domain_name      : 'Domain'
              dns_domain_name          : 'Domain.local'
              dn                       : NULL
              domain_sid               : *
                  domain_sid               : S-1-5-21-2501499472
              modified_config          : 0x00 (0)
              error_string             : 'failed to set machine spn:
Operations error'
              domain_is_ad             : 0x01 (1)
              result                   : WERR_GENERAL_FAILURE
Failed to join domain: failed to set machine spn: Operations error
[2008/06/30 13:38:10,  2] utils/net.c:main(1172)
  return code = -1


smb.conf:
[global]

    dos charset = CP1257
    unix charset = UTF-8
    display charset = UTF-8
    netbios name = LSFFILE1
    server string = "Storage"
    socket options = TCP_NODELAY SO_RCVBUF=262144 SO_SNDBUF=262144
    use mmap = yes
    use sendfile = yes
    os level = 1
    wins server 
    workgroup = DOMAIN
    security = ADS
    auth methods = guest sam winbind:ntdomain
    realm = DOMAIN.LOCAL
    password server = SERVER.DOMAIN.LOCAL
    logon path     logon home     lm announce = False
    local master = No
    domain master = False
    idmap uid = 10000-11000
    idmap gid = 10000-11000
    template shell = /bin/bash
    template homedir = /home
    winbind separator = +
    winbind use default domain = yes
    passdb backend = tdbsam:/etc/samba/smbpasswd.tdb
    encrypt passwords = Yes
    passwd program = /usr/bin/passwd %u
    passwd chat = *New*password* %n\n *Retype*new*password* %n\n
*passwd:*all*authentication*tokens*updated*successfully*
    unix password sync = yes
    guest account = nobody
    null passwords = yes
    guest only = no
    password level = 14
    map to guest = Bad User

krb5.conf
[libdefaults]
default_realm = DOMAIN.LOCAL
dns_lookup_realm = false
dns_lookup_kdc = false
ticket_lifetime = 24h
forwardable = yes

[realms]
DOMAIN.LOCAL={
        kdc=SERVER.DOMAIN.LOCAL
}

Thank you!