If you've found that you can import the user from AD successfully, but cannot bind to it when troubleshooting in Settings | User Authentication or log in to the K1000 with the user's account, check to see if they have workstation Log On To restriction in Active Directory.
If the restriction is the case, then users will not be able to login until the domain controller they are authenticating to in Settings | User Authentication is added to the Log On To section in Active Directory or the restriction is removed.
If the customer is concerned about security polices, we suggest that they implement a read only domain controller and point the KACE appliance to that by using this Microsoft link for instructions:
http://technet.microsoft.com/en-us/library/cc732801(v=WS.10).aspx
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