For a while I was blaming bad documentation for a number of days spent figuring out what’s wrong, but I finally realized that my case is rather specific.
Here are some of requirements that took a while to figure out:
- SQL Server Express Edition must be 2008.
- At some point, domain authentication won’t work if machine uses cloned/duplicate SID.
- Use sysprep /generalize on a clean machine to change SID .
- Do not use NewSID 4.10. It results in BSOD.