Even though you are logged in as the System Account or an account that is a farm administrator. The problem here is the actual Microsoft SSO service; open Services (Start > Administrative Tools > Services) and find the MS SSO Service. Right click on the service and select properties - click the Log On tab and check to see what account it is using - if it is the Local System, that is incorrect (this is the default setting). You must change this to be SharePoint Service account or the account running the Application Pool for SharePoint.
SharePoint Experts, Information Architects, Expert Witness
SICG provides a broad array of business and technology consulting from architecture to design to deployment of global systems with a focus on surfacing data in the enterprise. We focus on the "How", not just the possible. Contact me direct: firstname.lastname@example.org or call 704-873-8846 x704.