If you are running the Local Document Service configuration and you get this message, you can resolve this by following the steps outlined below.
An error occurred while configuring the logon account for the Local Document Service:
Unable to set "Logon As A Service" privilege on the ".\NDSyncAgent" user account. Error: Some or all identity references could not be translated.
At the point in the ldSetup program where it prompts for the Local Document Service User Account, if you specify a local user account by using a ‘.’ as the domain segment, then you'll see that same error. In place of the ".", use the name of the machine instead and you will not get the error.