When attempting to connect to a SharePoint site from the same server as SharePoint is installed you get authentication failures.

The solution is to create a network loopback

To specify the host names that are mapped to the loopback address and can connect to Web sites on your computer, follow these steps:

1.  Click Start, click Run, type regedit, and then click OK.
2. In Registry Editor, locate and then click the following registry key:
   HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Lsa\MSV1_0
3. Right-click MSV1_0, point to New, and then click Multi-String Value.
4. Type BackConnectionHostNames, and then press ENTER.
5. Right-click BackConnectionHostNames, and then click Modify.
6. In the Value data box, type the host name or the host names for the sites that are on the local  computer, and then click OK.
7. Quit Registry Editor, and then restart the IISAdmin service.

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