Persistently bound iSCSI volumes not mounting automatically on reboot

I have a Windows Server 2003 machine using Microsoft iSCSI Initiator that connects to a Fujitsu DX80. I've added a target that uses mutual CHAP and works wonderfully until I reboot. I have set the target to be persistent and bound the volume properly, but upon reboot it fails to successfully mount the drive. I see a few events in the System log that are of particular interest.

Early on in the boot process I see this

Event Type: Error
Event Source: dmboot
Description: dmboot: Failed to start volume Volume51 (M:)

Later on, I see this a couple of times

Event Type: Error
Event Source: iScsiPrt
Description: Initiator Service failed to respond in time to a request to encrypt or decrypt data.

Lastly, and probably most importantly, I see this

Event Type: Error Event Source: MSiSCSI Description: Timeout waiting for iSCSI persistently bound volumes. If there are any services or applications that use information stored on these volumes then they may not start or may report errors.

Armed with the knowledge of that last event, I tried to tweak the timeouts to be a bit longer. I modified the VolumeRetryCount to 720 and the VolumePostDiscoveryTimer to 90000. These had no effect on the outcome other than extending what is already a very slow boot process.

I've read this article, KB870964, but it doesn't apply to my situation since I'm not even getting to the point where I could be expecting a network share to map.

Any ideas?

EDIT: I've tried it without any CHAP authentication and it still doesn't work.