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We are facing a login issue due to a SAM error with the error code 12294.

Event Type: Error
Event Source: SAM
Event Category: None
Event ID: 12294
Description: The SAM database was unable to lockout the account of due to a resource error, such as a hard disk write failure (the specific error code is in the error data) . Accounts are locked after a certain number of bad passwords are provided so please consider resetting the password of the account mentioned above. 
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Grrr don't make me Google the error message, please actually include it in your question. – Ben Pilbrow Jun 25 '11 at 14:05
Also, I just Googled "event 12294 sam" like everyone else will. This might not be the error you're getting, which is why it's also so important to include the actual error text in the question. – Ben Pilbrow Jun 25 '11 at 14:06

Since you provide precious little detail, I can only really tell you what I think when I Google for event 12294 sam and read the error message that comes back.

According to KB887433, you may have a computer on your network which is infected with the W32.Randex.F worm, or one of its variants.

Also, the text of the event itself suggests a possible hardware issue with your disks. If you can run SMART checks or other diagnostics on your disks, identify if one is failing and replace as necessary.

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