Windows 2008 R2 NPS with mac-based authentication from HP Procurve switch

I am struggling to get mac-based authentication working on an HP Procurve 2626 switch together with NPS on Windows 2008 R2 acting as the Radius server.

I have succesfully managed to get user based authentication working between the switch and the NPS server but the mac-based authentication requests from the same switch are being bounced with 6723 errors.

The process I followed was as per the guidelines:-
Configured the relevant switch and port for mac-based authentication
Setup the NPS connection policy (with the "Override Network Policy" setting configured.
Setup a basic Network Access policy.
Created a user for my test device with the MAC address as the logon name and password and with the "reversible encryption pasword" setting on the user account.

When the device tries to authenticate the following errors appear in the security event log:-
Log Name:      Security
Source:        Microsoft-Windows-Security-Auditing
Date:          13/09/2011 09:00:32
Event ID:      6273
Task Category: Network Policy Server
Level:         Information
Keywords:      Audit Failure
User:          N/A
Computer:      MailIngestion.adnams.local
Network Policy Server denied access to a user.

Contact the Network Policy Server administrator for more information.

      Security ID:                  NULL SID
      Account Name:                  001d09b26cf2
      Account Domain:                  ADNAMS1
      Fully Qualified Account Name:      ADNAMS1\001d09b26cf2

Client Machine:
      Security ID:                  NULL SID
      Account Name:                  -
      Fully Qualified Account Name:      -
      OS-Version:                  -
      Called Station Identifier:      00-19-bb-88-fe-ad
      Calling Station Identifier:      00-1d-09-b2-6c-f2

      NAS IPv4 Address:            -
      NAS IPv6 Address:            -
      NAS Identifier:                  Reydon_IT
      NAS Port-Type:                  Ethernet
      NAS Port:                  19

RADIUS Client:
      Client Friendly Name:            HP Procurve 2626 (IT)
      Client IP Address:  

Authentication Details:
      Connection Request Policy Name:      MAC Based
      Network Policy Name:            -
      Authentication Provider:      Windows
      Authentication Server:            MailIngestion.adnams.local
      Authentication Type:            MD5-CHAP
      EAP Type:                  -
      Account Session Identifier:            -
      Logging Results:            Accounting information was written to the local log file.
      Reason Code:                  16
      Reason:                        Authentication failed due to a user credentials mismatch. Either the user name provided does not map to an existing user account or the password was incorrect.

An account failed to log on.

      Security ID:            SYSTEM
      Account Name:            MAILINGESTION$
      Account Domain:            ADNAMS1
      Logon ID:            0x3e7

Logon Type:                  3

Account For Which Logon Failed:
      Security ID:            NULL SID
      Account Name:            001d09b26cf2
      Account Domain:            ADNAMS1

Failure Information:
      Failure Reason:            An Error occured during Logon.
      Status:                  0xc000007a
      Sub Status:            0x0

Process Information:
      Caller Process ID:      0x34c
      Caller Process Name:      C:\Windows\System32\svchost.exe

Network Information:
      Workstation Name:      
      Source Network Address:      -
      Source Port:            -

Detailed Authentication Information:
      Logon Process:            IAS
      Authentication Package:      MICROSOFT_AUTHENTICATION_PACKAGE_V1_0
      Transited Services:      -
      Package Name (NTLM only):      -
      Key Length:            0

This event is generated when a logon request fails. It is generated on the computer where access was attempted.

The Subject fields indicate the account on the local system which requested the logon. This is most commonly a service such as the Server service, or a local process such as Winlogon.exe or Services.exe.

The Logon Type field indicates the kind of logon that was requested. The most common types are 2 (interactive) and 3 (network).

The Process Information fields indicate which account and process on the system requested the logon.

The Network Information fields indicate where a remote logon request originated. Workstation name is not always available and may be left blank in some cases.

The authentication information fields provide detailed information about this specific logon request.
      - Transited services indicate which intermediate services have participated in this logon request.
      - Package name indicates which sub-protocol was used among the NTLM protocols.
      - Key length indicates the length of the generated session key. This will be 0 if no session key was requested.

I found an article relating to enabling MAC based authication which suggests changing a "User Identity Attribute" registry value. This value didn't exist but I created it anyway but with no difference:-

I also found an article relating to EAP-MD5 having been discontinued in NPS since Windows 2008. I followed this one to and made the registry changes but still no success:-

What is interesting is that the request details from the log show the
Request type as being MD5-CHAP, I am not sure how this differs if at all from a EAP-MD5 request.

There are many documents and guides to achieving what I need to do with Windows 2003 IAS server but very few that relaate to NPS on Windows 2008 R2.

I am pretty confident that the switch config is good and that the connection policies are good to as I have got the user based 802.1X EAP(PEAP) authentication working perfectly.

Any help or guidance would be very much appreciated


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EE_AutoDeleterConnect With a Mentor Commented:
Because you have presented a solution to your own problem which may be helpful to future searches, this question is now PAQed and your points have been refunded.

AdnamsAuthor Commented:
After days of struggling I have just found the answer.
The problem was that even though the AD user I had created for the test devie MAC address had the "store password using reversible encryption" checked, our default domain policy had the "store password using reversible encryption for all users" setting set to "Disabled". Having changed the policy setting to "Not defined" and rebooted the domain controllers I now have 802.1X MAC and User based authentication working with very little compromise in security.

Horray !!!
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