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Source: Microsoft Support
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"Net localgroup" on a vista domain member allows adding a domain local group from a trusted domain.
The membership is there but will never work as the SID will not appear in the access token of a user or computer connecting to the machine.
The GUI allows adding the group only when you focus on the GC.
The same behavior happens on Windows XP and Windows 2003,and Windows 2008.
The admin tools do not completely enforce the rules of the operating system security infrastructure.
NET.EXE is probably not programmed to distinguish between the groups types.
Object picker does not look at the group type when searching through the GC. When the group is selected, it does not check the location of the group and its flags.
There is no resolution, the administrators need to be aware of the group evaluation rules, and that these foreign local groups are pointless on domain members.
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