Event ID - 529

Event Id529
SourceSecurity
DescriptionLogon Failure:

Reason: <Reason>
      User Name: <User Name>
      Domain: <Domain>
      Logon Type: <Logon Type>
      Logon Process: <Logon Process>
      Authentication Package:<Authentication Package>
      Workstation Name: <Workstation Name>
      Caller User Name: <Caller User Name>
      Caller Domain: <Caller Domain>
      Caller Logon ID: <Caller Logon ID>
      Caller Process ID: <Caller Process ID>
      Transited Services: <Transited Services>
      Source Network Address: <Source Network Address>
      Source Port: <Source Port>     

Event InformationAccording to Microsoft :
Cause :
This event record indicates an attempt to log on using an unknown user account or a valid user account but with an incorrect password. An unexpected increase in the number of these audits could represent an attempt by someone to find user accounts and passwords (such as a "dictionary" attack, in which a list of words is used by a program to attempt entry).
Resolution :
The person with administrative rights for the computer should establish a threshold limit for attempted log ons. Attempts in excess of the limit should be investigated as a possible attempt to break into the computer.

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Cause:
An unexpected increase in the number of these audits could represent an attempt by someone to find user accounts and passwords (such as a "dictionary" attack, in which a list of words is used by a program to attempt entry).

Resolution:
The administrator should establish a threshold limit for attempted log ons. Attempts in excess of the limit should be investigated as a possible attempt to break into the computer.

Following information  from Windows IT Pro may give more idea.
Windows will generate event ID 529 if the machine environment meets the following criteria:

The machine is running Windows XP.
The machine is a member of a domain.
The machine is using a machine local account.
Youve enabled logon failure auditing.

When the user logs off, Windows will write event ID 529 to the log file because the OS incorrectly tries to contact the domain controller (DC), despite the fact that the machine is using a local account. Microsoft currently doesnt provide a fix for this problem, but you can safely ignore this event ID.
Reference LinksEvent ID 529 From Source Security

The alternate Event ID in Vista and Windows 2008 is 4625.

Tracking Logon and Logoff Activity in Windows 2000 (Article)

Security Event 529 Is Logged for Local User Accounts

Failure Events Are Logged When the Welcome Screen Is Enabled

HOW TO: Troubleshoot Kerberos-Related Issues in IIS

Cannot Automatically Log on Remotely to Terminal Server with Long User Name or Password

An Incorrect Authentication Package Name May Appear in Audit Event 529

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