First of all, this login batch file (file extension BAT) works fine on our Win NT domain. And, yes, I am positive it is pointing to the right location. The code in error is:

kix32 system1

where system1 is the name of the kix file it is to be executing.

I have tried putting specific paths:
\\servername\netlogon\kix32 \\servername\netlogon\system1

It still does not work.