LogonUser() API blocks with wrong credentials


We are impersonating a user in an application that runs as a service. The service under which the application is running is started with Logon as Local System Account.

User have all the required previledge required like log on as service.
After providing correct credentials we are able to do successful impersonation

if the password passed to LogonUser() API is wrong it blocked/hanging.
we are using OS: Windows XP

For impersonation we are calling LogonUser() API


steps followed for impersonation are as follows-
1. LookupPrivilegeValue for SE_TCB_NAME
2. OpenProcessToken
3. AdjustTokenPrivileges
4. LogonUser
5. LoadUserProfile
6. ImpersonateLoggedOnUser

any suggestion would be great help for us.

Thanks in advance
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