People Picker not resolving names in any domain

Issue:

When attempting to resolve a user in People Picker -> Search, I enter the username, domain\username, or user's full name and it will not find the user. When reviewing the Security error log on the target domain controller, I get a 4625 Error with a status of 0xc000006d and message of "Unknown user name or bad password". However, I can log into SharePoint and the trusting domain with the specified username and password. Along with this now is that when attempting to find a user in the domain in which SP is, it will not resolve that user either. If I enter the user in the 'Add User' dialog in People and Groups and click the check user icon, it will resolve the user, but errors out with 'no exact match found'. When viewing the username details flyout, it does resolve the domain/username and the display name changes to the correct display name, but SP does not allow me to add the user.

Configuration:

This is a testing environment at this time. Single SP server in domain SP, one-way trust between SPTest and SP (SP trusting SPTest), two-way trust between SPTest02 and SP (SP trusting SPTest02). 

Both trust relationships are valid and DNS is resolving correctly.

stsadm.exe has been run setting both the setapppassword and peoplepicker-searchadforests (stsadm.exe -o SetProperty -pn PeoplePicker-SearchADForests -pv "domain:sptest.localdomain, SPTest\SP_PeoplePicker, passwordhere;domain:sptest02.localdomain, SPTest02\SP_PeoplePicker, passwordhere" -url http://FIM01)

Ports opened between the DCs and between the SP server and the DCs are:

TCP - 135, 445, 389, > 49152, 464, 636, 3268, 3269, 53, 88, 80, 443, 137, 138, 139, 749 & 750

UDP - 88, 389, 137, 123, 464, 53, 138, 139, 445, 749, 750 & 135

Mikol Westling "For those who say it cannot be done; Get out of the way of those that are doing it!"