WCF AllowNTLM .net 3.5sp1 and IIS7.5 - wcf

Question

I am getting the following error using WCF, calling the a WCF Service on another server.
An error (The request was canceled)
occurred while transmitting data over
the HTTP channel.
The following Services worked on a IIS7 Box on .net3, but we have recently upgraded to IIS7.5 and .net 3.5sp1, if I remove the AllowNtlm attribute out of the Config, the call gets further but does not pass allow the service to do a double hop to the database, i then get the follow error.
'NT AUTHORITY\ANONYMOUS LOGON'.
I have enclosed a copy of the client app.config, which worked using iis7, but
<?xml version="1.0" encoding="UTF-8"?>
<configuration>
<system.serviceModel>
<behaviors>
<endpointBehaviors>
<behavior name="Windows">
<clientCredentials>
<windows allowNtlm="false" allowedImpersonationLevel="Delegation"/>
</clientCredentials>
<dataContractSerializer maxItemsInObjectGraph="4194304"></dataContractSerializer>
</behavior>
</endpointBehaviors>
</behaviors>
<bindings>
<basicHttpBinding>
<binding allowCookies="false" bypassProxyOnLocal="false" closeTimeout="00:01:00" hostNameComparisonMode="StrongWildcard" maxBufferPoolSize="524288" maxBufferSize="4194304" maxReceivedMessageSize="4194304" messageEncoding="Text" name="BasicHttpBinding_CalculationWebService" openTimeout="00:01:00" receiveTimeout="00:30:00" sendTimeout="00:10:00" textEncoding="utf-8" transferMode="Buffered" useDefaultWebProxy="true">
<readerQuotas maxArrayLength="16384" maxBytesPerRead="4096" maxDepth="32" maxNameTableCharCount="16384" maxStringContentLength="8192"></readerQuotas>
<security mode="TransportCredentialOnly">
<message algorithmSuite="Default" clientCredentialType="UserName"></message>
<transport clientCredentialType="Windows" proxyCredentialType="None" realm=""></transport>
</security>
</binding>
</basicHttpBinding>
</bindings>
<client>
<endpoint address="http://server1.domain/WebServices/CacheManagement/CacheBusinessService.svc" behaviorConfiguration="Windows" binding="basicHttpBinding" bindingConfiguration="BasicHttpBinding_CacheWebService" contract="CacheWCFService.CacheWebService" name="BasicHttpBinding_CacheWebService">
<identity>
<servicePrincipalName value="http/server1.domain"></servicePrincipalName>
</identity>
</endpoint>
</client>
</system.serviceModel>
</configuration>
This is the Server Config, any ideas?
<?xml version="1.0"?>
<configuration>
<system.serviceModel>
<services>
<service behaviorConfiguration="CacheManagementBehavior" name="Iris.WebServices.CacheManagement.CacheWebService">
<endpoint address="" behaviorConfiguration="" binding="basicHttpBinding"
bindingConfiguration="basicHttpBinding_CacheManagement" contract="Iris.WebServices.CacheManagement.CacheWebService" />
<endpoint address="mex" behaviorConfiguration="" binding="basicHttpBinding"
bindingConfiguration="basicHttpBinding_CacheManagement" contract="IMetadataExchange" />
</service>
</services>
<bindings>
<basicHttpBinding>
<binding name="basicHttpBinding_CacheManagement" maxReceivedMessageSize="4194304" receiveTimeout="00:30:00">
<security mode="TransportCredentialOnly">
<transport clientCredentialType="Windows"/>
<message clientCredentialType="UserName"/>
</security>
</binding>
</basicHttpBinding>
</bindings>
<behaviors>
<serviceBehaviors>
<behavior name="CacheManagementBehavior">
<dataContractSerializer maxItemsInObjectGraph="4194304" ignoreExtensionDataObject="True"/>
<serviceMetadata httpGetEnabled="True"/>
<serviceDebug httpHelpPageEnabled="true" includeExceptionDetailInFaults="true"/>
<serviceAuthorization impersonateCallerForAllOperations="true"/>
</behavior>a
</serviceBehaviors>
</behaviors>
</system.serviceModel>
</configuration>

Answer 1

We managed to resolve the issue, by removing ServicePrincipleName from the config
<?xml version="1.0" encoding="UTF-8"?>
<configuration>
<system.serviceModel>
<behaviors>
<endpointBehaviors>
<behavior name="Windows">
<clientCredentials>
<windows allowNtlm="false" allowedImpersonationLevel="Delegation"/>
</clientCredentials>
<dataContractSerializer maxItemsInObjectGraph="4194304"></dataContractSerializer>
</behavior>
</endpointBehaviors>
</behaviors>
<bindings>
<basicHttpBinding>
<binding allowCookies="false" bypassProxyOnLocal="false" closeTimeout="00:01:00" hostNameComparisonMode="StrongWildcard" maxBufferPoolSize="524288" maxBufferSize="4194304" maxReceivedMessageSize="4194304" messageEncoding="Text" name="BasicHttpBinding_CalculationWebService" openTimeout="00:01:00" receiveTimeout="00:30:00" sendTimeout="00:10:00" textEncoding="utf-8" transferMode="Buffered" useDefaultWebProxy="true">
<readerQuotas maxArrayLength="16384" maxBytesPerRead="4096" maxDepth="32" maxNameTableCharCount="16384" maxStringContentLength="8192"></readerQuotas>
<security mode="TransportCredentialOnly">
<message algorithmSuite="Default" clientCredentialType="UserName"></message>
<transport clientCredentialType="Windows" proxyCredentialType="None" realm=""></transport>
</security>
</binding>
</basicHttpBinding>
</bindings>
<client>
<endpoint address="http://server1.domain/WebServices/CacheManagement/CacheBusinessService.svc" behaviorConfiguration="Windows" binding="basicHttpBinding" bindingConfiguration="BasicHttpBinding_CacheWebService" contract="CacheWCFService.CacheWebService" name="BasicHttpBinding_CacheWebService" />
</client>
</system.serviceModel>
</configuration>