The command:
STSADM.exe -o setproperty -pn peoplepicker -searchadforests -pv domain:DnsName,user,password-url http://webapp
seems to be wrong, it should be:
STSADM.exe -o setproperty -pn peoplepicker-searchadforests -pv domain:DnsName,user,password -url http://webapp
without the space between peoplepicker and -searchadforests