Userenv Event ID 1053 "Windows cannot determine the user or computer name"

In my case system was running on Windows Server 2003 R2 with latest patches installed. Network interfaces ware teamed with default settings using hp network utility. The machine was member of domain and following event was logged in application event log :

Event Type: Error
Event Source: Userenv
Event Category: None
Event ID: 1053
Date:  3/5/2012
Time:  5:20:09 PM
User:  NT AUTHORITY\SYSTEM
Description:
Windows cannot determine the user or computer name. (The specified domain either does not exist or could not be contacted. ). Group Policy processing aborted.
For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.

Network interface settings for DNS were correct and servers reachable. Server was connected on two manageable cisco switches. After enabling portfast on both interfaces, problem was resolved and error event disappeared.

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