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w3wp: the server is not operational?

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Hello - The CRM implementation I was working on was working in prod a few days ago but now it's returning an "unexpected error." I've included the error written to the Windows Application log below. We already tried the PreferredDc solution that seems to have worked for a lot of other people. However, it's not working for us. Can you make any recommendations on next steps?

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Event code: 3005
Event message: An unhandled exception has occurred.
Event time: 8/16/2013 6:08:32 PM
Event time (UTC): 8/17/2013 1:08:32 AM
Event ID: 78fd6c1c783842879deb76918c46a83c
Event sequence: 823
Event occurrence: 3
Event detail code: 0

Application information:
Application domain: /LM/W3SVC/1/ROOT-1-130211749785727500
Trust level: Full
Application Virtual Path: /
Application Path: C:\Program Files\Microsoft Dynamics CRM\CRMWeb\
Machine name: MSRC-CRM-PROD1

Process information:
Process ID: 3512
Process name: w3wp.exe
Account name: MYDOMAIN\SRCAUTO

Exception information:
Exception type: COMException
Exception message: The server is not operational.

at System.DirectoryServices.DirectoryEntry.Bind(Boolean throwIfFail)
at System.DirectoryServices.DirectoryEntry.Bind()
at System.DirectoryServices.DirectoryEntry.get_NativeObject()
at System.DirectoryServices.DirectoryEntry.Invoke(String methodName, Object[] args)
at Microsoft.Crm.SecurityUtils.CheckMembership(Guid principalId, Guid groupId)
at Microsoft.Crm.Caching.OrganizationSettingsCacheLoader.LoadCacheData(Guid key, ExecutionContext context)



Request information:
Request URL: http://msrc-crm-prod1/MSRC/default.aspx
Request path: /MSRC/default.aspx
User host address: fe80::3963:c395:c7f0:3151/
User: MYDOMAIN\v-ancicc
Is authenticated: True
Authentication Type: Negotiate
Thread account name: MYDOMAIN\SRCAUTO

Thread information:
Thread ID: 10
Thread account name: MYDOMAIN\SRCAUTO
Is impersonating: False
Stack trace: at System.DirectoryServices.DirectoryEntry.Bind(Boolean throwIfFail)
at System.DirectoryServices.DirectoryEntry.Bind()
at System.DirectoryServices.DirectoryEntry.get_NativeObject()
at System.DirectoryServices.DirectoryEntry.Invoke(String methodName, Object[] args)
at Microsoft.Crm.SecurityUtils.CheckMembership(Guid principalId, Guid groupId)
at Microsoft.Crm.Caching.OrganizationSettingsCacheLoader.LoadCacheData(Guid key, ExecutionContext context)



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