After several attempts I was able to rectify the issue by disabling SBS Account lockout policy...
Open Server Management.
- In the console tree, click Advanced Management, right-click Group Policy Management, and then click Add forest.
- In the Add forest dialog box, enter the domain name. When prompted Do you want to add this forest with this domain?, click Yes.
- In the console tree, under Group Policy Management, click Forest:forestname, click Domains, right-click Small Business Server (Account) Lockout Policy, and then click Edit.
- In Group Policy Object Editor, click Computer Configuration, click Windows Settings, and then click Security Settings.
- Under Security Settings, click Account Policies, and then click Account Lockout Policy.
- In the details pane, double-click each of the following policies, and modify settings as needed: Account lockout duration, Account lockout threshold, and Reset account lockout counter after.
- I SET ACCOUNT LOCKOUT THRESHOLD TO ZERO.
- Click Apply, click OK, and then close Group Policy Object Editor.
- Close Group Policy Management.
- Open Server Management.
- In the console tree, click Advanced Management, right-click Group Policy Management, and then click Add forest.
- In the Add forest dialog box, enter the domain name. When prompted Do you want to add this forest with this domain?, click Yes.
- In the console tree, under Group Policy Management, click Forest:forestname, click Domains, right-click domainname, click Domain Controllers, right-click Small Business Server Auditing Policy, and then click Edit.
- In Group Policy Object Editor, click Computer Configuration, click Windows Settings, click Security Settings, and then click Local Policies.
- Under Security Settings, click Local Policies, and then click Audit Policy.
- In the details pane, double-click Audit logon events, and modify settings as needed.
- Click Apply, click OK, and then close Group Policy Object Editor.
- Close Group Policy Management.
