I was setting up a demo for a talk today. Normally my VPC environment will be 1 Domain Controller (DC) and another server for SharePoint and Visual Studio.
Then out of sudden I went to disable the Kerberos service on my DC just to avoid the startup error created by Kerberos service. Note: VPC start up is slower and for DC, normally Kerberos service startup will timeout but eventually it will get started.
Without Kerberos, I still managed to sign in to my SharePoint VPC with no problem whatsoever. It is until I start developing a VS2008 SharePoint Workflow project, then I realize the IIS restart fails to response until VS2008 returns a SharePoint Server not found error.
It took me a few hours to find out what happen until I check my event logs and realize I notice my SharePoint app pool user try to start certain services but hit authentication error. This is when I realize it must have something to do with the Kerberos service being disabled.
Ta! Ta! Once the Kerberos service got started, everything returns to normal and my day got saved!