I had also this errorhad the 0x80070035 error. After three days of searching, myI found the solution was to checkin the following registry keys in:
[HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Lsa\MSV1_0]
You should see:
“Auth132″=”IISSUBA” “NtlmMinClientSec”=dword:00000000 “NtlmMinServerSec”=dword:00000000 “RestrictReceivingNTLMTraffic”=dword:00000002 “RestrictSendingNTLMTraffic”=dword:00000002
“Auth132″=”IISSUBA”
“NtlmMinClientSec”=dword:00000000
“NtlmMinServerSec”=dword:00000000
“RestrictReceivingNTLMTraffic”=dword:00000002
“RestrictSendingNTLMTraffic”=dword:00000002
Delete these last 2 entries: “RestrictReceivingNTLMTraffic”=dword:00000002 “RestrictSendingNTLMTraffic”=dword:00000002
“RestrictReceivingNTLMTraffic”=dword:00000002
“RestrictSendingNTLMTraffic”=dword:00000002