To resolve this problem, specify the host name. To specify the host names that are mapped to the loopback address and that can connect to Web sites on your computer, follow these steps:
- Click Start, click Run, type regedit, and then click OK.
- In Registry Editor, locate and then click the following registry key: HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Lsa\MSV1_0
- Right-click MSV1_0, point to New, and then click Multi-String Value.
- Type BackConnectionHostNames, and then press ENTER.
- Right-click BackConnectionHostNames, and then click Modify.
- In the Value data box, type the host name or the host names for the sites that are on the local computer, and then click OK.
- Exit Registry Editor, and then restart the computer.
This comes from a kb article that seems irrelevent to the issue however it does correct the issue.
KB 956158