So this issue was reported elsewear a year ago, though I never saw it happen until I just updated our base image to 10.7.5 > apps store InstallESD, pure vanilla InstaDMG.
http://forums.macrumors.com/showthread.php?t=1240725
Newly imaged machine cannot login as local admin or AD domain user. After entering credentials the screen flashes gray and then back to the auth. prompt. The reboot button also will not work. Pretty much identically reported, though no solid solutions are mentioned.
Has anyone here seen this and nailed down 'why'?
