xgrid is not available

Fresh install of 10.6 Server. After getting Web, DNS, OD setup adn running install PCP and Xgrid. Immediately after installing the logs start filling with the following error: "Xgrid is not available, watcher cannot perform Xgrid operations". Reinstalled a second time and error message returns. DNS and Reverse DNS records are reporting fine. OD is authenticating and working properly.

I'm hoping someone will have an idea. I've found pages of others that have the same issue, but no one has found a solution. And deleting /var/pcast/server/krb_cc and restarting PCP does not fix the issue.

Thank you for anyone that can post a fix to this issue.