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Exchange Management Console unable to connect - Initilization failed

The following error occurred while attempting to connect to the specified Exchange Server 'servername.domain.local":

The attempt to connect to http://srvername.domain.local/PowerShell using "Kerberos" authentication failed: Connecting to remote server failed with the following error message: Logon failure: unknown username or bad password.    
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DarinTCH
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Have a look here:
http://social.technet.microsoft.com/Forums/en-CA/exchange2010/thread/c268a1e7-684a-479c-996e-fa4cb11e4950

Steps:
1.    Apply the latest RU;
2.    Remove the Kerbauth module from the Default Web Site. To do this, follow these steps:
1)    Open IIS Manager.
2)    Click Default Web Site.
3)    Double-click the Modules component.
4)    Click Kerbauth.
5)    Click Remove.
6)    Then, check the PowerShell Virtual Directory, and make sure that the Kerbauth module is listed.  If the module is not listed, follow these steps:
7)    Under Actions, click Configure Native Modules.
8)    Click to select the Kerbauth check box.
9)    Click OK.
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GlenHarvey

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Also I noticed that our backup failed with the following

Click an error below to locate it in the job log
Backup- \\EXCHANGE_SERVER_NAME.DOMAIN.local\Microsoft Information Store\Mailbox Database 0794349792V-79-57344-65298 - The Exchange Store service is not responding. Backup set canceled.

V-79-57344-65072 - An error occurred while connecting to the Backup Exec Remote Agent on the media server. Ensure that the job options are correct, and then submit the job again. The backup set was not created.

Backup- EXCHANGE_SERVER_NAMERemote Agent not detected on EXCHANGE_SERVER_NAME.DOMAIN.local.

Backup- EXCHANGE_SERVER_NAME.DOMAIN.localRemote Agent not detected on EXCHANGE_SERVER_NAME.DOMAIN.local.

Unable to attach to \\EXCHANGE_SERVER_NAME.DOMAIN.local\D:.

V-79-57344-33899 - The resource could not be backed up because an error occurred while connecting to the Backup Exec for Windows Servers Remote Agent.


Note: Click 'Edit Selection List...' to display the View Selection Details tab of the job's selection list. Select the entry with the server that no longer exists and click Delete to remove it.Edit Selection List...
Make sure that the correct version of the Remote Agent is installed and running on the target computer.  If the server or resource no longer exists, remove it from the selection list. Edit the selection list properties, click the View Selection Details tab, and then remove the resource.

Unable to attach to \\EXCHANGE_SERVER_NAME.DOMAIN.local\Shadow?Copy?Components.

V-79-57344-33899 - The resource could not be backed up because an error occurred while connecting to the Backup Exec for Windows Servers Remote Agent.


Note: Click 'Edit Selection List...' to display the View Selection Details tab of the job's selection list. Select the entry with the server that no longer exists and click Delete to remove it.Edit Selection List...
Make sure that the correct version of the Remote Agent is installed and running on the target computer.  If the server or resource no longer exists, remove it from the selection list. Edit the selection list properties, click the View Selection Details tab, and then remove the resource.

Unable to attach to \\EXCHANGE_SERVER_NAME.DOMAIN.local\System?State.

V-79-57344-33899 - The resource could not be backed up because an error occurred while connecting to the Backup Exec for Windows Servers Remote Agent.


Note: Click 'Edit Selection List...' to display the View Selection Details tab of the job's selection list. Select the entry with the server that no longer exists and click Delete to remove it.Edit Selection List...
Make sure that the correct version of the Remote Agent is installed and running on the target computer.  If the server or resource no longer exists, remove it from the selection list. Edit the selection list properties, click the View Selection Details tab, and then remove the resource.

Verify- EXCHANGE_SERVER_NAME.DOMAIN.localUnable to attach to \\EXCHANGE_SERVER_NAME.DOMAIN.local\System?State.

V-79-57344-33899 - The resource could not be backed up because an error occurred while connecting to the Backup Exec for Windows Servers Remote Agent.


Note: Click 'Edit Selection List...' to display the View Selection Details tab of the job's selection list. Select the entry with the server that no longer exists and click Delete to remove it.Edit Selection List...
Make sure that the correct version of the Remote Agent is installed and running on the target computer.  If the server or resource no longer exists, remove it from the selection list. Edit the selection list properties, click the View Selection Details tab, and then remove the resource.


Hi "DarinTCH" - I am still logging on to the Exchange Server using the Administrator account of our domain. Nothing has changed to the account.

Hi "Nenadic" - The KB article reference does not appear to be the same issue, and I am not convinced this is related. Removing the Kerbauth module from the Default Web Site in IIS seams like a stab in the dark...

Any other thoughts?
Your Kerberos authentication is failing. My suggestion is to switch to NTLM. Not a stab in the dark, but I don't really intend to try and convince you. :-)
Thanks Nenadic :@)

In IIS Manager, under Default Web Site,  Modules, I dont see Kerbauth listed

As for installing the latest RU, I have yet to deploy Update Rollup 4 for Exchange Server 2010 Service Pack 1, which will have to be done during a service window after hours
You can safely ignore the RU bit. OK, here is the full version from the Exchange Product Group.
http://blogs.technet.com/b/exchange/archive/2010/12/07/3411644.aspx

It's a longer read, but much more comprehensive.
The EMTshooter Troubleshooter described in this article does not include nor cover the error I have: Logon failure: unknown username or bad password.    
You probably need to provide a bit more information:
- Have you ever been able to connect to your Exchange using EMC?
- Have you made any changes recently?
- What errors do you see in default event logs?
- Anything else that is pertinent.
Have you ever been able to connect to your Exchange using EMC - Yes, always up until a week or so ago

Have you made any changes recently? - yes, we were recently having problems with Outlook Certificate Warnings popping up following upgrading Outlook 2003 to Outlook 2010 - I followed this article to resolve the issue: http://shift-command-3.blogspot.com/2011/01/outlook-certificate-warning-with.html

What errors do you see in default event logs? - Here is a possibly related error that I have to also tacle: Microsoft Exchange could not load the certificate with thumbprint of 4F05F434CFC888B3F8C5B0FBF2F1C34182EF6AF8 from the personal store on the local computer. This certificate was configured for authentication with other Exchange servers. Mail flow to other Exchange servers could be affected by this error. If the certificate with this thumbprint still exists in the personal store, run Enable-ExchangeCertificate 4F05F434CFC888B3F8C5B0FBF2F1C34182EF6AF8 -Services SMTP to resolve the issue. If the certificate does not exist in the personal store, restore it from backup by using the Import-ExchangeCertificate cmdlet, or create a new certificate for the FQDN or the server enabled for SMTP by running the following command: New-ExchangeCertificate -DomainName serverfqdn -Services SMTP. Meanwhile, the certificate with thumbprint C58D5F7C8FDB8EEC88A37250687AA425974C4C09 is being used.
Have you checked if the Certificate still exists in the Computer store Personal Certificates? That could provide a solution. You could run the command safely even without checking. If the Certificate is not available - it will just produce the error.
This was the problem!
Credential-Manager.jpg
I've requested that this question be closed as follows:

Accepted answer: 0 points for GlenHarvey's comment http:/Q_27295214.html#36497184

for the following reason:

I found the solution myself/
DarinTCH did suggest you should check your credentials.
Yes, you are right. I just didnt know to check the Credential Manager in Control Panel, as the only account that has ever been logged onto this server was the Administrator account of the domain. The Credential Manager must have stored this other account when I connected to OWA via IIS perhaps/.

My appologies gents - Thank you both for all you help!
Did not know to check the Credential Manager in Control Panel, as the only account that has ever been logged onto this server was the Administrator account of the domain.
Unreal, The credential Manager was the problem for my client also. Spent hours trying to resolve this. Previous IT provider couldn't spell administrator
That was my problem too. Now I am getting the following message:

VERBOSE: Connecting to mtzionserv03.mtzionchurch.org


[xxxxx.xxxxx.com] Connecting to remote server failed with the following error message : The client cannot connect to the destination specified in the request. Verify that the service on the destination is running and is accepting requests. Consult the logs and documentation for the WS-Management service running on the destination, most commonly IIS or WinRM. If the destination is the WinRM service, run the following command on the destination to analyze and configure the WinRM service: "winrm quickconfig". For more information, see the about_Remote_Troubleshooting Help topic.
    + CategoryInfo          : OpenError: (System.Manageme....RemoteRunspace:RemoteRunspace) [], PSRemotingTransportException
    + FullyQualifiedErrorId : PSSessionOpenFailed
The Exchange Management Troubleshooter successfully completed connecting to:

xxxxx.xxxxx.com

Great Job Glen.  Just helped me out!!!