Issue is has been resolved. I did several things one of which was setup reverse addressing.
For anyone who reads this and would like to have some direction for troubleshooting.
Get a client that is clearly not functioning and do all your testing there.
You will want to enable userenv logging to verbose.
http://support.microsoft.com/kb/221833Download and install gpmc.msi
http://www.microsoft.com/downloads/details.aspx?FamilyID=0A6D4C24-8CBD-4B35-9272-DD3CBFC81887&displaylang=enonce installed you can do a start - run - gpmc.msc or rsop.msc. There are good instructions on how to use these via google.
One thing I also might have done wrong is assign the same ip to as the previous server
Retired server name/ip = Genesis2 / 192.168.1.2
New server name/ip = Genesis3 / 192.168.1.2
Last night I changed it so it was 192.168.1.5
After you do this, go into DNS and look for the old computer name and delete any records of the old server, especially SRV records.
You will need to reboot the client twice. And after you make these changes a ipconfig /flushdns with a gpupdate /force was NOT enough. I needed to do a complete reboot and for the gpo to fully apply I had to reboot twice.
To anyone that reads this I hope it helps and really thank Raheem05 for getting me in the dns direction. I should known to go there when experiencing AD issues.
Thanks Raheem05!!!