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Logon failure the target account name is incorrect when trying to open shared network folder.

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We have another business location that is connected to us via VPN, when anyone at that location tries to open a server directly \\servername\folder it gives them this message "Logon failure the target account name is incorrect" . If they try to open the same folder with an IP address \\10.2.1.1\folder it opens. If we ping the servername from the same computer it resolves. They can access email and log into their virtual machines. There is no domain firewall setup on the computer or server. The IP address and DNS on the computers are right. I've taken the computer off the domain and put it back on and reset the vpn tunnel that connects us. I've also done a flushdns multiple times. Our third location isn't having any problems. PLEASE HELP...

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