I have revised this post.
The inital EAP issue was that the client was rejecting the server certificate and it turned out to be a mis-spelling in the certificate on the ACS appliance, but now that this has been resolved I am getting the error that the user is not found in the selected identity store. The user it's trying to authenticate is the computer name against active directory; the computer is a member of the domain and the groups are setup properly. I am using the active directory connector not an ldap connection.
I have seen numerous posts that were similar and the majority of them have no resolution; there has to be something simple being missed, can anyone provide details.