Following a CRM 2011 installation that seemed to work, users were getting 401.1 unauthorized errors when connecting to the CRM server from their PCs.
However, everything worked fine when connecting to CRM from the server.
The problem was found to be that kernel-mode authentication was not enabled on the CRM website. To resolve the issue, complete the following steps:
- In IIS, navigate to the Microsoft Dynamics CRM Website.
- In Features View double-click Authentication.
- Double-click Windows Authentication.
- Click Advanced Settings.
- Ensure that Enable Kernel-mode authentication is checked.