The client machine presents the right password, but the wrong machine account. If the images that are being used are cloned without properly being SysPrepped, the scenario arises where two machines are presenting the same SIDs, while the passwords are out of sync.
To resolve this error, reset the password using the Netdom.exe tool included in the Windows Support Tools. The Netdom tool resets the account password on the computer locally (known as a "local secret") and writes this change to the computer's computer account object on a Windows domain controller that resides in the same domain. Simultaneously writing the new password to both places ensures that at least the two computers involved in the operation are synchronized, and starts Active Directory replication so that other domain controllers receive the change. For detailed instructions on using the Netdom.exe tool, see the following KB article: http://support.microsoft.com/kb/260575
You can also remove the client and add it back to the domain to resolve this error.