Andrew,  I have solved the problem. 1. When I upgraded the client on te server to V7.2 and then then V7.2MR1 using the VASCLIENT32.exe from V6.x, selecting the Enable Legacy passthrough credential did not install the Legacy SSO service - PNSSOSVR.exe process. After uninstalling the vWorkspace Connecter for Windows and then re-installing (with the legacy option ticket) did installed this service correctly. 2. This resolved the the pass through authentication for seamless applications. However, in order to have pass through credentials work when using a PIT file that was created by PNTSC it was  necessary to put a check in both the "Pass through Credentials" and "Use local credentials to logon".  Chris
When deploying a PIT file created using PNTSC on a Windows 2008 R2 SP1 RDSH server and then made available to all users on those same servers, the user is prompted for username, password and domain. Connecting from the PNTSC directly also prompts the ser for user credentials.  The version of the installation on the terminal servers is 7.2 MR1. The version of PNTSC is V7.2.302.414.  It might also be worth pointing out that seamless apps publish on a users RDSH desktop using desktop Intergrated mode and making sure that the "Credentials"  setting is set to "Use Cached Credentials" indicates that the credentials for the Farm connection are also not valid. Once the change the Credentials settings to "Use the following credentials" the seamless applications published from that manage work as designed.  Is there something I am missing in all of this?
Enable credentials pass-through using PNTSC or PIT file fails on W2K8R2 SP1