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Microsoft SQL Server 2008 R2 Software - Error "Login failed. The login is from an untrusted domain and cannot be used with Windows authentication"

Issue

SQL Server returns the following error while try to connect from the client.

Environment:

Microsoft Windows Server 2008 R2 Standard

System Type x64-based PC

System Model ProLiant DL360 G7

Microsoft SQL Server 2008 (SP1) - 10.0.2531.0 (X64)

Enterprise Edition (64-bit) on Windows NT 6.1 <X64>

(Build 7601: Service Pack 1)

SQL log:

2012-05-23 15:04:03.35 Logon Error: 17806, Severity: 20, State: 2.
2012-05-23 15:04:03.35 Logon SSPI handshake failed with error code 0x8009030c while establishing a connection with integrated security; the connection has been closed. [CLIENT: XX.XXX.XXX.XX]
2012-05-23 15:04:03.35 Logon Error: 18452, Severity: 14, State: 1.
2012-05-23 15:04:03.35 Logon Login failed. The login is from an untrusted domain and cannot be used with Windows authentication. [CLIENT: XX.XXX.XXX.XX] 2012-05-23 15:04:05.05 Logon Error: 17806, Severity: 20, State: 2.
2012-05-23 15:04:05.05 Logon SSPI handshake failed with error code 0x8009030c while establishing a connection with integrated security; the connection has been closed. [CLIENT: XX.XXX.XXX.XX]
2012-05-23 15:04:05.05 Logon Error: 18452, Severity: 14, State: 1.
2012-05-23 15:04:05.05 Logon Login failed. The login is from an untrusted domain and cannot be used with Windows authentication. [CLIENT: XX.XXX.XXX.XX] 2012-05-23 15:04:06.36 Logon Error: 17806, Severity: 20, State: 2.
2012-05-23 15:04:06.36 Logon SSPI handshake failed with error code 0x8009030c while establishing a connection with integrated security; the connection has been closed. [CLIENT: XX.XXX.XXX.XX]
2012-05-23 15:04:06.36 Logon Error: 18452, Severity: 14, State: 1. 2012-05-23 15:04:06.36 Logon Login failed. The login is from an untrusted domain and cannot be used with Windows authentication. [CLIENT: XX.XXX.XXX.XX]

Cause:

The SQL server has been configured to operate in Windows Authentication Mode (Windows Authentication) and does not allow the use of SQL accounts.

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