This is a DNS issue. If the DNS of the system is not pointing to the DNS Server which includes a record of the domain, then it hangs on and will do nothing. This is usually the case if we specify the DNS server as public internet servers rather than our own internal domain DNS server.
Solution: Logon with the local administrator account and change the DNS address to the one which specifies the domain in its records. To come out of the waiting loop, just press Ctrl-Alt-Del twice and the system will come out of the waiting loop.
Basically what this means is that you should find out which DNS the Domain server is using then manually input that DNS server information into your connection properties.