"Login Failed for user ' ', the user is not associated with a trusted SQL Server connection".
In this scenario, client may make tcp connetion, plus, running under local admin or non-admin machine account, no matter SPN is registered or not, the client credential is obviously not recognized by SQL Server.
The workaround here is:
Create the same account as the one on the client machine with same password on the target SQL Server machine, and grant appropriate permission to the account.
Let's explain in more detail:
When you create the same NT account (let's call it usr1) on both
workstations, you essentially connect and impersonate the local account of
the connecting station. I.e when you connect from station1 to station2,
you're being authenticated via the station2's account. So, if you set the
startup account for SQL Server (let's assume it's running on station2) to be
station2's usr1, when you connect to SQL from station1 with station1's usr1
login, SQL will authenticate you as station2's usr1.
Now, within SQL, you can definitely access station1's resources. Though, how
much access will depend on station1's usr1 permission.
So far, SQL only deal with an user who is part of the sysadmin role within
SQL Server. To allow other users (non-sysamdin) access to network resources,
you will have to set the proxy account. Take a look at the article for
additional info.
taken from http://blogs.msdn.com/sql_protocols/archive/2006/12/02/understanding-kerberos-and-ntlm-authentication-in-sql-server-connections.aspx