[Problem]
After taking a Computer out of a domain, the SQLServer will fail with Error 1068 and refuse to start up.
[Solution]
This is because the service still is trying to authenticate the SQLUser (created on installation) with the PDC. Go to your System Panel - Computer Managment, Services, and find the MSSQLServer service. In the options, change the account the server uses to log on to "Local Account". Then, tell it to use the local SQLUser Account to start the service. However, you have to reboot before this works - simply restarting the SQLManager and clicking the "play" button will bring you the exact same error. After a reboot, it will work just fine.
SQL/Error 1068 the dependency service or group failed
Addendum
Here is the exact error you receive:
An error 1068 - (The dependency service or group failed to start.) occurred while performing this service operation on the MSSQLServer Service.