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Source: Microsoft Support
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When you try to run the adconfig /validateinstance instance command in the domain from a Windows XP Service Pack (SP2) computer that has .NET 2.0 Service Pack 1 (SP1) installed, the command fails. Additionally, you receive the following error message:
Error while searching for group with security identifier (SID) type [BuiltinAuthorizationAccessSid]: The parameter is incorrect.
From the same computer, the following commands work as expected:
Even installing .NET 2.0 SP1 on the domain controller did not help.
Run the adconfig /validate instance command from the domain controller.
Note Installing from a computer that is not a domain controller is supported, provided it is run from any computer in the same site and domain.
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