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I am using PEAP w/ machine Auth, not EAP-TLS.

Yes, PEAP machine auth does still use Username/Password, I had just never configured it that way so I was unaware of how it worked.

Yes you are correct in that if a machine is not on the domain and you are using machine auth then it will not get authenticated. I was just listing what they wanted for authentication and it probably sounded like I was speaking about machine auth specifically.

Thanks for the help