Unable to start-job with credentials

Question

I cannot get any jobs to run while using the credential parameter and I'm absolutely sure the credentials are correct. Has anyone had this issue?
PS C:\Windows\system32> Start-Job -credential $creds -scriptblock {start-sleep 10}
Id              Name            State      HasMoreData     Location             Command
1               Job1            Failed     False           localhost            start-sleep 10
Dan

Answer 1

Same result with version 3. 
PS H:\> start-job -name newjob1 -Credential $credential -ScriptBlock {start-sleep 10}
Id     Name            PSJobTypeName   State         HasMoreData     Location             Command
8      newjob1         BackgroundJob   Failed        False           localhost            start-sleep 10
PS H:\> (get-job -name newjob1).ChildJobs[0].JobStateInfo |fl
State  : Failed
Reason : System.Management.Automation.Remoting.PSRemotingTransportException: There is an error launching the
         background process. Error reported: The directory name is invalid. ---> System.ComponentModel.Win32Exception:
         The directory name is invalid
            at System.Diagnostics.Process.StartWithCreateProcess(ProcessStartInfo startInfo)
            at System.Management.Automation.Runspaces.PowerShellProcessInstance.Start()
            at System.Management.Automation.Remoting.Client.OutOfProcessClientSessionTransportManager.CreateAsync()
            --- End of inner exception stack trace ---
Dan