Well, this one was gob-smacking! A colleague of mine (Tristan Watkins) pointed me at this article from Mark Russinovich, the developer of the "NewSID" tool that so many people use for creating a new machine SID for a machine (typically after a re-image or copying a virtual machine).
Well, it seems we don't need to bother anymore and never really did, at least in the vast majority of cases!
"It’s a little surprising that the SID duplication issue has gone unquestioned for so long, but everyone has assumed that someone else knew exactly why it was a problem. To my chagrin, NewSID has never really done anything useful and there’s no reason to miss it now that it’s retired."
To read more, go check out Mark's blog post here: http://blogs.technet.com/markrussinovich/archive/2009/11/03/3291024.aspx
Update - A good follow up summary has also been written by one of my colleagues, Tristan Watkins.
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