CRM : Cannot Add new users

If you are running CRM locally and you try and add a new user and you get this error:

Unhandled Exception: System.ServiceModel.FaultException`1[[Microsoft.Xrm.Sdk.OrganizationServiceFault, Microsoft.Xrm.Sdk, Version=, Culture=neutral, PublicKeyToken=31bf3856ad364e35]]: Server was unable to process request.Detail:
  Server was unable to process request.

 The error here is this section:


This is a domain controller error which says the server is not operational, which is weird as people can login but new users cannot be added - weird hey???

Once I did some investigation I noticed CRM trying to call a domain controller which was no more, so I found this registry hkey:


You will notice a key called: PreferredDc

If you set this key ensure it points to a valid domain controller, in our case this pointed to a domain controller which was no longer a domain controller

If you do not have this key then CRM will auto discover the domain controller.
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