The problem is that you still need to somehow provide the password. Just because the password is the same between the local and domain accout desn'tmean Windows would use it. I would even consider such a behavior a significant security hole.
I agree it's a Security Hole, but I disagree that it won't use it. I've been able to use that "loop-hole" for many years on every OS Microsoft puts out including Server 2003. Now VISTA may have finally done something about it but not sure.
Stupid, Stupid on MS part to allow that to happen but it does.
Correctly coding and using tools or methods appropriate would be better though.
