Trying this out but it's not working for me.
It seems to be caused by running Vista Home edition. The "A windows logon credential" radiobutton on the 'Stored Credential Properties" is grayed out, which is the option needed for this.
That used to be connected to a setting in the registry HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Contro l\Lsa, DisableDomainCreds=0
But that registry entry is no longer effective since Aug 2009 software updates.
Anyone know of a way out of this ? Other than swapping OS, that's not really an option for me at this point in time.