In lab 1, Exercise 1, Task 4, we were asked to set a GPO policy to Allow Delegating Default Credentials. We set this delegation to NYC-TS-01 which was our terminal server. The reason that we did this was to support the SSO (Single Sign On) capability in Windows Vista and Windows 7. You may notice that when credentials are required, the client goes into the secure desktop mode. Not even the client software knows what you have typed. This is a security enhancement for you Windows Vista, Win7 and Win2008 environments.
Reference: http://technet.microsoft.com/en-us/library/cc749211(WS.10).aspx
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