When authenticating to a Mac OS X Server version 10.5 iChat server that is bound to Active Directory, clients that are not configured to use Kerberos will not be able to authenticate, when using Active Directory credentials.
Either configure the iChat client to use Kerberos authentication or disable the use of CRAM-MD5 authentication on the iChat server.
Option 1: Configure a client to use Kerberos
Option 2: Disable use of CRAM-MD5 authentication on the iChat server
To do this, you will need to edit the authentication settings in the file /etc/jabberd/c2s.xml and restart the jabberd service:
<traditional>
<plain/>
<!-- <cram-md5/> -->
<!--
<digest/>
<zerok/>
-->
</traditional>
launchctl unload /System/Library/LaunchDaemons/org.jabber.jabberd.plist
launchctl load /System/Library/LaunchDaemons/org.jabber.jabberd.plist