Situation: After configuring LAPS, the client gets this Event 12294: The SAM database was unable to lockout the account of Administrator 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.
Troubleshooting:
Error ID 12294 means there are numerous failure authentication events in security log due to incorrect credentials or could be a virus issue.
As you have changed the built-in domain Administrator password then ensure that the credentials are updated everywhere. e.g. for service account, IIS application pool, account tied to a scheduled task, virtual machine, mapped drice, etc…
If you have already verified the the old Administrator credentials are updatetd everywhere then the reason for event 12294 is worm virus and you need to full virus scan and Malicious Software Removal tool Virus to remove the Win32/Conficker malware family.
Event ID: 12294 Woes
http://blogs.technet.com/b/mempson/archive/2012/01/13/event-id-12294-woes.aspx
Malicious Software Removal tool Virus to remove the Win32/Conficker malware family.
http://support.microsoft.com/kb/962007