So I did my research and found multiple answers that say the same thing.
In order for old NT clients to authenticate to 08 DC's you have to
change the following.  I've done so with no success.  Am I missing
something else?  It's been 6 hours since I made the change so policy
should have replicated.  Nothing in the security event log on the DC
other than and audit success when the computer attempted to validate the
credentials for the account.
 

Default Domain Controller GPO:
Computer Configuration->Policies->Windows Settings->Security
Settings->Local Policies->Security Options

Network security: LAN Manager authentication level
----Send LM & NTLM - use NTLMv2 session security if negotiated 

Computer Configuration->Policies->Administrative Templates->System->Net
Logon

Allow cryptography algorithms compatible with Windows NT 4.0
---Enabled 

Software\Policies\Microsoft\Netlogon\Parameters\AllowNT4Crypto 1 

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