In my case, I was attempting to use Windows XP to host an MDT 2010 Deployment Share. When booting the target machine into Windows PE to connect to the share, it consistently threw up the following error:
System error 1326 has occurred.
Logon failure: unknown user name or bad password
The issue ended up being the Authentication Method to XP Shares is not supported by default in Windows 7 or Windows PE (Thanks Microsoft!). The following registry entry in the Windows OS:
“HKEY_LOCAL_MACHINE\System\CurrentControlSet\Control\Lsa”
“LMCompatibilityLevel” = “1”
Data Type = REG_DWORD
* Create value if it not already exist.
http://technet.microsoft.com/en-us/library/cc960646.aspx
Can also be applied via the MDT Windows PE Unattend.XML file using the following method (File: C:\Program Files\Microsoft Deployment Toolkit\Templates\Unattend_PE_x86.xml) :
BEFORE:
<RunSynchronous>
<RunSynchronousCommand wcm:action="add">
<Description>Lite Touch PE</Description>
<Order>1</Order>
<Path>wscript.exe X:\Deploy\Scripts\LiteTouch.wsf</Path>
</RunSynchronousCommand>
</RunSynchronous>
AFTER:
<RunSynchronous>
<RunSynchronousCommand wcm:action="add">
<Description>Change Share Auth Support</Description>
<Order>1</Order>
<Path>REG ADD "HKLM\System\CurrentControlSet\Control\Lsa" /v "LMCompatibilityLevel" /t REG_DWORD /d "1" /f</Path>
</RunSynchronousCommand>
<RunSynchronousCommand wcm:action="add">
<Description>Lite Touch PE</Description>
<Order>2</Order>
<Path>wscript.exe X:\Deploy\Scripts\LiteTouch.wsf</Path>
</RunSynchronousCommand>
</RunSynchronous>