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This may be a known issue that quite a few users have been having. Apparently, the domain machine requests to change its domain password every 30 days by default and it cannot change it over the PEAP connection successfully. http://www.eggheadcafe.com/community/aspnet/52/10093941/8021x-peap-fails-after-2.aspx Microsoft apparently does not plan to fix this and when you complain, they say to use EAP-TLS. The Microsoft KB about the parameters is here: http://support.microsoft.com/kb/175468 You need to change the maximum machine account password age parameter to something like 999 to attempt to step around this. I have seen this work with the majority of people who tried it, but have seen two who it did not work for at all.

Mind you, Microsoft says that there is a security issue of not changing your machine passwords regularly (I disagree, however). If you do try this, let us know how you do.