I found this on the Microsoft site after some research. It seems to
have fixed our problem.
If you have more than one DNS, you might want to consider assigning
different groups to different DNS.
Event ID 1054 is logged in the application event log
View products that this article applies to.
Article ID : 298656
Last Review : May 5, 2004
Revision : 1.0
This article was previously published under Q298656
For a Microsoft Windows Server 2003 version of this article, see 324174
(
http://support.microsoft.com/kb/324174/).
SYMPTOMS
You may receive the following event message in the application event
log:
Event ID: 1054
Source: Userenv
Type: Error
Description:
Windows cannot obtain the domain controller name for your computer
network. (The specified domain either does not exist or could not be
contacted). Group Policy processing aborted.
The client computer may also experience an extremely slow logon.
CAUSE
This issue may occur if the address for the configured preferred Domain
Name System (DNS) server on the client is unreachable or not valid.
RESOLUTION
To resolve this issue, correct the DNS address in the Internet Protocol
(IP) properties. To do this, follow these steps: 1. Click Start, click
Control Panel, click Network and Internet Connections, and then click
Network Connections.
2. Right-click Local Area Connection, and then click Properties.
3. Click Internet Protocol (TCP/IP), and then click Properties.
4. Select the Use the following DNS server addresses option button if
it is not already selected.
5. Type the correct DNS address in the Preferred DNS server box.
6. Click OK.
STATUS
This behavior is by design.