I tried both bridged and host-only network with internet sharing. Bridged gets the RPC error, host-only with internet sharing resulted in kindof spotty network access.
I also applied the hotfix mentioned in
http://support.microsoft.com/kb/899148/ for Win 2K3 SP1 computers, it didn't help. I then added the Server2003NegotiateDisable registry key to try and disable the RPC packet changes identified in the same KB article, to no effect.
netstat -a looks like this:
Proto Local Address Foreign Address State
TCP MACHINENAME:http WW-DMURDOCKW2K3:0 LISTENING
TCP MACHINENAME:epmap WW-DMURDOCKW2K3:0 LISTENING
TCP MACHINENAME:microsoft-ds WW-DMURDOCKW2K3:0 LISTENING
TCP MACHINENAME:1025 WW-DMURDOCKW2K3:0 LISTENING
TCP MACHINENAME:1029 WW-DMURDOCKW2K3:0 LISTENING
TCP MACHINENAME:1056 WW-DMURDOCKW2K3:0 LISTENING
TCP MACHINENAME:ms-olap1 WW-DMURDOCKW2K3:0 LISTENING
TCP MACHINENAME:ms-olap2 WW-DMURDOCKW2K3:0 LISTENING
TCP MACHINENAME:msolap-ptp2 WW-DMURDOCKW2K3:0 LISTENING
TCP MACHINENAME:4265 WW-DMURDOCKW2K3:0 LISTENING
TCP MACHINENAME:netbios-ssn WW-DMURDOCKW2K3:0 LISTENING
UDP MACHINENAME:microsoft-ds *:*
UDP MACHINENAME:isakmp *:*
UDP MACHINENAME:1030 *:*
UDP MACHINENAME:ms-sql-m *:*
UDP MACHINENAME:ipsec-msft *:*
UDP MACHINENAME:ntp *:*
UDP MACHINENAME:netbios-ns *:*
UDP MACHINENAME:netbios-dgm *:*
UDP MACHINENAME:ntp *:*
I was also able to create a clean XP SP2 image and add that to the domain without any problem. One more interesting nugget, once the 2K3 image notifies me of an RPC error when joining the domain, I can see the machine account disabled in AD Users and Computers.