I'm not sure, I believe that its the application blocking that is doing it. However when I disable just the application creation monitor I get the error "Internal error 0xC7E50014 occurred. Try Again." When I disable the firewall as well I am able to authenticate. I am then able to turn everything back on and work as normal.
Are you seeing blocked traffic in the FW activity for the netware traffic? Enable debug logging via ePO for this node. Try disabling Application Blocking all together then test. If the issue still occurs then disable the FW module. At least now we can isolate the module. If it is FW then we can check the activity log to verify blocked traffic and look through the firesvc.log file to see if we are seeing blocked traffic there too. You may just have to create a specific rule for the netware traffic. You may also want to try to put the culprit module in adaptive mode to see if it creates a rule automatically for that traffic. If it does then you can apply it to your effective policy.