I'm having the same problem
Using DNN 5.2.0
AD: 5.0.2
Login as Admin to your site.
Admin->Extensions
Under the Authentication Systems Click on the Pencil of DNN_ActiveDirectoryAuthentication.
In the Text box for "Default Domain" enter in your domain.
Click on Update Authentication Settings.
Now navigate away from this page (ie. Click on the Home tab)
Now navigate back to the page
Admin->Extensions
Under the Authentication Systems Click on the Pencil of DNN_ActiveDirectoryAuthentication.
The Default Domain box is now blank again.
When my AD users first login to the site, they are logged in through AD. (Except I'm still having a missing Display name so I put an After Insert trigger on the Users table to copy the Display Name from the e-mail field if the display name field is blank).
However, if the click on the "Logout" they can't log back in.
Tried Selected "Windows Login"
Tried both <domain>\<UserName> as well as just <UserName>, as the domain didn't seem to be sticking.
Typed in Password and get
"Login Failed. Please remember that passwords are case sensitive"
The only way I can get back in now is to deleted my cookies. If I delete the cookies it resets and allows AD to log me in.
Any ideas on why?