I am trying to switch my ArcServer from running on a LOCAL account to running on a Active Directory DOMAIN account. I created a DOMAIN account call "arcgis" and added it to the "Users" DOMAIN group. Then I went to the Group Policy Manager and gave the "arcgis" user "Log on as a service" user rights. I then refreshed the Group Policies on the Domain Server.
Next I went back to my ArcServer machine and opened the "Local Security Policy" manager and gave the user "Log on as a service" user rights. I ran the "Configure ArcGIS Server User Account" utility with the new Domain account and everything seemed fine. Then I went to the services console and checked the properties for the ArcServer service and it had the new domain account listed as the account to use. I tried to restart the service but it failed. It will not restart with the domain account.