After struggling with this issue for almost two days now, I have run
out of issues. Here is what I get when i run kinit

C:\Program Files\Java\jdk1.5.0_16\bin>kinit -k -t c:\
Exception: krb_error 24 Pre-authentication information was invalid
(24) Pre-auth
entication information was invalid
KrbException: Pre-authentication information was invalid (24)
at 486)
at st(
at java:106)
Caused by: KrbException: Identifier doesn't match expected value (906)
at :133)
at 8)
... 4 more

We have a windows 2008 server running Active Directory. I have created
a JBOSS user there and ran the SetSPN and Ktpass utlility. Also, I
have made sure that DES encryption check box is checked for the JBOSS.
Since I modified that check box few times, I have made sure that I
reset the password everytime as I read few places that it can create
issues with the encryption.

I am running the kinit on windows 2003. I have generated the key tab
file on 2003 using Ktab command. (I have also tried generating this
file in 2008 and using that file when I run the command in 2003 but of
no use)

Now I am not sure what else is going on. Iniitlally I was running into
client not found in the database. I went past that problem by making
sure that I ran the kinit utility by just passing in the user name
JBOSS rather than mydomanin\JBOSS

If you need more info I would be more than happy to provide it.
Looking for any clue to move forward.