When enabled, this policy setting causes Local System services that use Negotiate to use the computer identity when NTLM authentication is selected by the negotiation. This policy is supported on at least Windows 7 or Windows Server 2008 R2. This policy setting allows Local System services that use Negotiate to use the computer identity when reverting to NTLM authentication. Fix: (1) GPO: Computer Configuration\Windows Settings\Security Settings\Local Policies\Security Options!Network security: Allow Local System to use computer identity for NTLM (2) REG: HKEY_LOCAL_MACHINE\System\CurrentControlSet\Control\Lsa!UseMachineId