Sharepoint web services — The HTTP request is unauthorized with client authentication scheme 'Ntlm'. The authentication header received from the server was 'NTLM?

After a lot of trial and error, followed by a stagnant period while I waited for an opportunity to speak with our server guys, I finally had a chance to discuss the problem with them and asked them if they wouldn't mind switching our Sharepoint authentication over to Kerberos.

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