Windows NT LAN Manager Version 3 Client with First Logon Prevents Subsequent Logon Activity

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Symptoms
When a client uses Windows NT LAN Manager version 2 authentication (also known as NTLMv2) that is configured with the LmCompatibilityLevel setting to 3 or higher to make a connection to a server running Windows NT 4.0 before a console user has logged on interactively or some other client has performed network logon using LAN Manager or NTLMv1 authentication, one of the following symptoms may occur on the server:
  • The server may generate an "access violation" error message, possiblyrelating to the LSASS service. This may occur on both the server and theclient during startup, especially during periods of heavy network logontraffic.
  • The domain name field may not appear on the logon screen of the server even though the user name and password fields do. You may not be able to log on to the domain because this indicates that the domain controller cannot be found.
  • Your logon attempt may not work, and you may receive the following error message:
    The system cannot log you on (C0000037). Please try again or consult yoursystem administrator.
Cause
This behavior occurs because the Windows NT LAN Manager version 2 (level 3+) logon is received and processed by the server before the NlSamInitialize function is called, causing an "Access violation" error message. Also, at this time Lsass.exe generates a "STATUS_PORT_DISCONNECTED" error message, which prevents subsequent logon attempts from succeeding.
Resolution

Windows NT Server or Workstation 4.0

To resolve this problem, obtain the latest service pack for Windows NT 4.0 or the individual software update. For information on obtaining the latest service pack, please go to:
  • 152734how to obtain the latest windows nt 4.0 service pack
For information on obtaining the individual software update, contact Microsoft Product Support Services. For a complete list of Microsoft Product Support Services phone numbers and information on support costs, please go to the following address on the World Wide Web:

Windows NT Server 4.0, Terminal Server Edition

To resolve this problem, obtain the latest service pack for Windows NT Server 4.0, Terminal Server Edition. For additional information, click the following article number to view the article in theMicrosoft Knowledge Base:
152734 How to Obtain the Latest Windows NT 4.0 Service Pack

Status
Microsoft has confirmed that this is a problem in Windows NT 4.0 and Windows NT Server 4.0, Terminal Server Edition.

This problem was first corrected in Windows NT Server 4.0 Service Pack 6 and Windows NT Server 4.0, Terminal Server Edition Service Pack 6.
More information
Windows NT 4.0 supports Windows NT challenge/response (or Windows NT LAN Manager challenge/response) as a method of authentication, along with Basic Authentication and Anonymous Access. Microsoft has developed an enhancement to NTLM called Windows NT LAN Manager version 2 which uses a 128-bit password-derived key and significantly improves session security mechanisms.

For more information about Windows NT LAN Manager version 2, please click the article number below to view the article in the Microsoft Knowledge Base:
147706How to Disable LM Authentication on Windows NT
This behavior may not occur when the following situations circumvent the issues involved:
  • When a server service that runs using a user account starts before the first non-anonymous logon.
  • When a user interactively logs on to the server console before the first non-anonymous logon occurred.
  • When a client computer is not configured to send Windows NT LAN Manager version 2 only (level 3) as the first non-anonymous logon
ntlmv2 ntlm invalid handle invalid_handle 6
Properties

Article ID: 241338 - Last Review: 12/05/2015 15:50:52 - Revision: 4.0

Microsoft Windows NT Server 4.0 Standard Edition, Microsoft Windows NT Workstation 4.0 Developer Edition, Microsoft Windows NT Server 4.0 Enterprise Edition

  • kbnosurvey kbarchive kbhotfixserver kbqfe kbbug kberrmsg kbfix kbnetwork KB241338
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