Having problems with a previously written web app which was running on IIS6 and has now been moved to IIS7 by the client.

The app is set to impersonate an authenticated user and utilise business connector to talk to an AX server.

In the Event Log:

When connecting to the app locally on the IIS server all is well however when connecting remotely (another computer on same domain) we receive the following error messages:

The description for Event ID 180 from source Dynamics .NET Business Connector 4.0 cannot be found. Either the component that raises this event is not installed on your local computer or the installation is corrupted. You can install or repair the component on the local computer.

If the event originated on another computer, the display information had to be saved with the event.

The following information was included with the event:

RPC exception 5 occurred in session 0

In the output log of the app:

17/06/2011 2:43:33 PM - Failed to establish connection.    at Microsoft.Dynamics.BusinessConnectorNet.Axapta.Logon(BC_PROXY_ACCOUNT_INFO* pBCProxyAccountInfo, String company, String language, String objectServer, String configuration)
   at Microsoft.Dynamics.BusinessConnectorNet.Axapta.LogonUsingBCProxyAccount(_SEC_WINNT_AUTH_IDENTITY_W* pImpersonatedUserAccount, NetworkCredential bcProxyCredentials, String company, String language, String objectServer, String configuration)
   at Microsoft.Dynamics.BusinessConnectorNet.Axapta.LogonAs(String user, String domain, NetworkCredential bcProxyCredentials, String company, String language, String objectServer, String configuration)

It appears to be a delegation issue.  Have tried setting delegation for the proxy account with no luck.  Any suggestions would be greatly appreciated.