Windows Server 2003 SP2 breaks SFU
We have already seen too many people reporting this - Windows Server 2003 Service Pack 2 installation breaks two functionalities in Services for UNIX 3.5 installations - Interix subsystem and Password Synchronization.
The root cause lies with SP2 unintentionally replacing the SFU 3.5 Interix binaries and Password Synchronization binaries with corresponding R2 binaries. The specific files that get replaced after installing SP2 are psxss.exe, psxdll.dll and pswdsync.dll. First two are part of the SFU 3.5 Interix subsystem and the last belongs to SFU 3.5 Password Synchronization component.
Microsoft is aware of this problem is working on a patch to address this issue.
Until the patch is ready, the only way out is to manually put the right binaries back in place. To do that, you can either copy the above mentioned files from some other working box that has SFU 3.5 installed or get the right drivers from Microsoft support.
While you ask Microsoft PSS for the right drivers, I would recommend asking for the binaries that were included with the Services for UNIX Security and Reliability rollup package 913030 since it contains the necessary SFU 3.5 binaries for Interix subsystem and Password Synchronization components.
After you've obtained the above hot fix 913030, follow the steps below -
There is likely to be a fix very soon. I would update this post whenever that happens.