So they are logging in with laptops not on the domain, and it prompt that local user/pass checkbox

is that a problem if we are doing radius into ldap?

Like they have a domain account but are not on a laptop on the domain

The prompt is specified when you create the profile on the machine. You can either have the user get prompt for login, save a username and password or use the cache credentials. You need to look at the errors in radius and in the wlc. One will have enough info to say what went wrong during the authentication process.

Here are the debugs from teh wlc. when i uncheck peap - don't automatically use windows login with windows wireless zero; it lets me type in the domain name and i am able to get it to work

So it works when you type the domain\username and then the password. Have you tried to uncheck the "Authenticate as computer when computer information is available"? I do think you need to specify the domain though.

the acs says this

EAP-TLS or PEAP authentication failed during SSL handshake

Make sure you uncheck "Validate Server Certificate", unless you add the CA to the trusted certificate store.