We installed SharePoint 2010 on a Windows Server 2008 R2 server with IIS 7. A new web application was created and set to use NTLM authentication. When browsing to this web application using the local hostname, authentication was successful, and the web site displayed as normal. But due to multiple web sites that will be used on this web server, we wanted to use a different host name for this particular web site.
For example: Hostname = MOSSSERVER; website hostname = WEBSITENAME.
WEBSITENAME was added to the Internal DNS server and the local hosts file, and we attempted to browse to http://WEBSITENAME, but the web site would not authenticate using that hostname. The following event appeared in Windows Event Viewer:
Event ID: 6037
The program w3wp.exe, with the assigned process ID, could not authenticate locally by using the target name HTTP/WEBSITENAME. The target name used is not valid. A target name should refer to one of the local computer names, for example, the DNS host name.
Try a different target name.
No problem. So http://WEBSITENAME was added to the Alternate Access Methods in SharePoint 2010 for this web application. Still the same error occurred, yet authentication was successful if the http://MOSSSERVER URL was used.
After much investigation, we managed to find that a valid target name needs to be specified. This can be done by performing the following:
1. Go to REGEDIT > HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Lsa\MSV1_0
2. Right click MSV1_0 > New > Multi-String Value
3. Type ‘BackConnectionHostNames’
4. Right click & select ‘Modify’
5. Enter the Hostname of the site: WEBSITENAME (and on a new line enter the FQDN, WEBSITENAME.domain.com as well)
6. Restart IIS