Sounds like the trust relationship between the client and server may be broken, which requires re-join the PC to the domain. I wouldn't do that as of yet but if doing so see Jeff's outline as there are folders and reg entries to delete:
http://techsoeasy.spaces.live.com/blog/cns!AB2725BC5698FCB8!278.entryLog shows "workstation service" stopped I would set to automatic and restart in the services management console.
Can you ping the DC (172.16.0.35)?
If so, does nslookup DCname and nslookup Domainname return the correct IP?