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You cannot delete a group in a Windows Server 2003-based domain.
This problem occurs because there is a conflict between objects that have the same objectSID value. Specifically, a Foreign Security Principal (FSP) object has a name that conflicts with another FSP object. When this problem occurs, the FSP code lets you manipulate only the older FSP object.
To resolve the problem, follow these steps:
Use the LDP utility to rename the older object so that it has a new security identifier (SID).
Delete the other conflicting object.
Delete the original object that you renamed in step 1.
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.
Microsoft Windows Server 2003, Datacenter Edition (32-bit x86), Microsoft Windows Server 2003, Datacenter x64 Edition, Microsoft Windows Server 2003, Enterprise x64 Edition, Microsoft Windows Server 2003, Enterprise Edition (32-bit x86)