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Using NAV2009 without domain accounts

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I'm porting an old NAV 2009 installation to a new server (from Windows Server 2008 to Windows Server 2012). I installed NAV on the new server and restored the SQL Server database to a new SQL Server (2012) instance. 

On the old server we had the logins handled with domain accounts. The new server is not the domain however, so we're using database accounts.

I can connect using the classic client because it lets me specify a database account, but when I try to connect using the RTC (using localhost:7046/DynamicsNav) I get an error saying "Login failed for user 'NT AUTHORITY\ANONYMOUS LOGON' (see screenshot below). The NAV Server service is running as the "Network Service" account. 

pastedimage1574790566612v1.png

I tried editing the ClientUserSettings.config file and setting "ClientCredentialType" value value to "UserName" instead of the default of "Windows" and restarting the NAV Server service, but that didn't seem to help. 

Is there a way I can get things to work using database users instead of Windows users?

Thanks in advance.

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