User Profile Sync - Fails on ilmbuilddatabase

Setting up user profile service.

Following the excellent harbar guide as usual which normally results in a working service.

The service gets stuck on starting when provisioning (go to services and server and start as the farm account)

Looking at the uls the following steps work well.

User Profiles 9i1y Medium ILM Configuration: Validating account. 
User Profiles 9i20 Medium ILM Configuration: Validating the system groups 
User Profiles 9i23 Medium ILM Configuration: Setting up WMI 
User Profiles 9i24 Medium ILM Configuration: Setting required permissions 
User Profiles 9i26 Medium ILM Configuration: Create install config file 
User Profiles 9i28 Medium ILM Configuration: Update source project 
User Profiles 9i29 Medium ILM Configuration: Changing service account credentials 
User Profiles d3bo Medium ILM Configuration: Setting policy for service account 
User Profiles 9i2a Medium ILM Configuration: Configuring database 
User Profiles 9i2b Medium ILM Configuration: Re-starting mms service 
User Profiles 9i2d Medium ILM Configuration: Checking mms service 
User Profiles 9q1e Medium ILM Configuration: Configuring XML file. 
User Profiles 9q1f Medium ILM Configuration: Checking for existing FIM database. 
User Profiles eee3 Medium ILM Configuration: Building database. 

Once it gets to 'Building database'.

It fails with the error below

Any ideas?

UserProfileApplication.SynchronizeMIIS: Failed to configure ILM, will attempt during next rerun. Exception: System.Security.SecurityException: Logon failure: unknown user name or bad password.

at System.Security.Principal.WindowsIdentity.KerbS4ULogon(String upn)

at System.Security.Principal.WindowsIdentity..ctor(String sUserPrincipalName, String type)

at System.Security.Principal.WindowsIdentity..ctor(String sUserPrincipalName)

at Microsoft.IdentityManagement.SetupUtils.IlmWSSetup.GetDomainAccountSIDHexString(String domainName, String accountName)

at Microsoft.IdentityManagement.SetupUtils.IlmWSSetup.GrantSQLRightsToServiceAccount()

at Microsoft.IdentityManagement.SetupUtils.IlmWSSetup.IlmBuildDatabase()

at Microsoft.Office.Server.UserProfiles.Synchronization.ILMPostSetupConfiguration.ConfigureIlmWebService(Boolean existingDatabase)

at Microsoft.Office.Server.Administration.UserProfileApplication.SetupSynchronizationService(ProfileSynchronizationServiceInstance profileSyncInstance) The Zone of the assembly that failed was: MyComputer.