As I suspected, I was doing something wrong with the NET USE command.

Here's how it should look to connect to a machine:

$list = "net use \\\\$Machine $password /USER:$domain\\$user";
system ("$list");
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And then connect as follows: $regKey = $Registry->Connect( $Machine, $target, { Access=>KEY_READ } );

Note that I do not do and explicit or die after the connect attempt since I want to trap the failed machines so I do an  if ($regKey) {} later in the code.

Kakaze