Server 2012 System Error 5 When Connecting to Administrative Shares

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Because Microsoft Windows is made by a bunch of butt-heads that can't figure out that System Administrators, Engineers, and Help Desk Analysts don't want to be forced into doing things their way we now have the following.
This is a chronicle of the steps I am taking to fix a problem with users not being able to open default administrative shares that they have access too.

The Problem

  • Server 2012 (now called s12) has a drive with letter "E".
  • The security group "Special-APP" have read/execute permissions to drive letter "E" as well as full access to a sub directory.
  • Users are not able to access \\s12\e$ with a prompt from their workstations asking for user name and password.
  • If a user enters their domain credentials they are denied access.
  • If you try to access the share using
C:\net use \\s12\e$

You get asked for your credentials, and then are given

System error 5 has occurred

The Attempts to Fix