Just an observation for anyone scratching their head.
I upgraded from 0.32 to 1.2.0 and noticed that I didn’t require the domain name in front of the Domain Username anymore.
Used the following to diag, FOG_SERVER_ADDRESS/fog/service/hostname.php?mac=XX:XX:XX:XX:XX:XX
Noticed that my domain name was in duplicate before my Domain Username.
Logic says remove it and it was golden! Sha-wing!