2012 Cluster service name failing

I have successfully created a cluster, but any services I try to cluster fail with the same or similar symptoms (I have tried clustering DTC and installing a SQL cluster).

Environment:

2 – nodes – both Windows Server 2012 – third 2012 box acting as an iSCSI SAN – all machines are on one Hyper-V host – Domain is Windows server 2003

2 networks – 10.x.x.x for the external, and 192.168.154.x for the internal & iSCSI – Windows Firewall is off

I cannot get either the DTC or SQL to work within the cluster – both seem to have the same issue – they appear to install OK, but the associated computer objects do not get created in AD, nor do DNS entries, then the network name resources fail with the following errors:

System Events:

1196 – Cluster network name resource 'Cluster Name' failed
registration of one or more associated DNS name(s) for the following
reason: The handle is invalid

(I have created DNS entries manually, but this has not helped)

1069 – Cluster resource 'MGCLSQLDEVDTC' of type 'Network Name' in
clustered role 'MGCLSQLDEVDTC' failed.

1205 – The Cluster service failed to bring clustered service or
application 'MGCLSQLDEVDTC' completely online or offline. One or more
resources may be in a failed state. This may impact the availability
of the clustered service or application.

1254 – Clustered role 'MGCLSQLDEVDTC' has exceeded its failover
threshold. It has exhausted the configured number of failover
attempts within the failover period of time allotted to it and will be
left in a failed state. No additional attempts will be made to bring
the role online or fail it over to another node in the cluster.
Please check the events associated with the failure. After the issues
causing the failure are resolved the role can be brought online
manually or the cluster may attempt to bring it online again after the
restart delay period.

1228 – Cluster network name resource 'Cluster Name' encountered an
error enabling the network name on this node. The reason for the
failure was: 'Unable to obtain a logon token'.

The error code was '1326'.

Security Events:

4625 – An account failed to log on Subject: Node server, Account for which logon failed: CNO

Some errors from the cluster log:

2050 – [RES] Network Name: [NNLIB] LogonUserEx fails for user
mgclsqldev$: 1326 (useSecondaryPassword: 0)

2050 – [RES] Network Name : Identity: Get Token Request,
currently doesnt have a token!

2050 – [RES] Network Name : AccountAD: Slow operation
has exception ERROR_INVALID_HANDLE(6)' because of
'::ImpersonateLoggedOnUser( GetToken() )'

2051 – [RES] Network Name : Online thread Failed:
ERROR_SUCCESS(0)' because of 'Initializing netname configuration for
MGCLSQLDEVDTC failed with error 6.'

2051 – [RHS] Online for resource MGCLSQLDEVDTC failed.

2050 – [RCM] HandleMonitorReply: ONLINERESOURCE for 'MGCLSQLDEVDTC',
gen(7) result 5018/0.

2051 – [RCM] rcm::RcmResource::HandleFailure: (MGCLSQLDEVDTC)

The cluster computer object ended up in the same OU as the cluster nodes which is different from the default “Computers” OU – I went in there and assigned all kinds of permissions, but that didn’t seem to affect anything.