I didn’t think much of it at the time, and was able to resolve my edit by going to the SYSVOL folder and finding the login batch file and editing it.
I went ahead and rebooted the new SBS 2011 Essentials server to see if the startup still hung for a long time, or was now fixed since I fixed the bad DNS issues.
Strengthen your organization’s security and simplify access to critical resources by implementing the appropriate Identity Management (Id M) and Identity Access Management (IAM) strategies.
Run(Wiz Data data)  120810.150231.2459: Client Setup: Exiting Validate User Task.
In this particular customers case, no Reverse DNS was setup.
For full instructions of this procedure, see Type Y to agree to stop additional services, and then press ENTER.
At the command prompt, type ntdsutil, and then press ENTER.
in fact, I was so happy to solve it that I updated the Microsoft Forums with my resolution.
After visiting other computers in this clients office and running the wizard, I kept seeing errors in the event log about Group Policies.Since I thought that AD might be damaged, I did the following: On the Windows 2003 server, I saw in the Applications event viewer the following error, MS DTC could not correctly process a DC Promotion/Demotion event.The first thing for me to check was the health of Active Directory.Validate User  120810.150219.8267: Client Setup: Entering Validate User Task. I noticed that when I restarted the new SBS 2011 Essentials server that it would take a very long time till I got a CTRL-ALT-DELETE login screen, basically just sitting there “applying settings”. NET 4, but I verified I didn’t even have it installed before I ran the wizard. The next step was to look at the server being the issue. To fix it, I went ahead and attempted to ping the new SBS 2011 Essentials server by FQDN. I expanded the nodes under the AD zone, looking specifically at _msdcs stub.Run  120810.150219.9047: Client Setup: Install root cert to local trusted store  120810.150219.9671: Client Setup: Validating User  120810.150219.9671: Client Setup: Call Machine Identity Manager. Machine Identity Exception: Machine Identity Manager. At first I thought it was caused by my NIC being teamed, but after disabling the team I had the same results. I then took a look at the event logs on the client machine. I logged in to my existing 2003 Domain Controller and looked at the event logs. In that stub, I found references to my SBS 2011 Essentials sever with the wrong IP address, as well as additional entries with the correct IP.At the semantic checker: prompt, type verbose on, and then press ENTER.