All of this works just fine for me.  I'm just trying to figure out what
the differentiating factor is in your environment.  So you have no
network cable plugged in at all right?  Not just connected to a
different network which does not have connectivity back to your DC?  You
said in comment #1

    "If I then connect to a VPN which can reach the domain
    and restart lsassd and netlogond, I can once again log in\
    as myself. Caching does work as long as lsassd
    continues running."

So I was wondering if lsassd was in fact working fine but due to a
network start order was not fully initialized when you tried to log in.

And when you say it does work with "upstream" packages, specifically
what version packages from www.likewise.com are you referring to?
Thanks for the information and your patience.

-- 
password caching no longer works
https://bugs.launchpad.net/bugs/509934
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