is the Dev box in the Domain?? It problably doesn't exists there...
Also per BOL
>>SQL Server must connect to the domain controller to retrieve group membership information. If the server cannot contact the domain controller, no information will be returned.
Permissions
Requires membership in the sysadmin fixed server role or membership in the public fixed database role in the master database with EXECUTE permission granted.<<
http://msdn.microsoft.com/en-us/library/ms190369.aspx