Had this issue when trying to setup a cluster in VMWare. It was a pretty odd error - when the server booted, the Server Manager showed a Red Flag with the message 'Refresh Failed'. In viewing the servers (All Servers), the second server indicated "Kerberos Authentication Failed". Oddly enough, in checking the 2nd server, low and behold, no errors at all.
Issue turns out to be VERY simple - you MUST be logged in as a domain account that is included in the Administrators (i.e. Local Users and Groups Administrators) group; you cannot use any local system account.
If you need to use the local administrator account for some reason, you can disregard these errors.